Go Digit General Insurance Limited IPO Message Board (Page 19)

Dear Members,

Any estimation for qib subscription?

Those who are applying, react here.
👍

​@scbkc Sirji thoda scroll kariye, niche newgen ka review mil jayega

Sab itna mehnga maal chipka ke chale jaate hai see Mufti ipo 40 percent down chal raha hai just like bhoot Bangla me pravesh ho gaya ho Mufti ipo ke promoter aur company ka kitna jabardast QIB tha Mufti ka sab barbaad kar ke nikal liye patli gali se

Go seem to be very risky Dark horse 🐴🐎

GMP is MIRAGE .

You mean GMP is in GARAGE ?

Mirage= hallucinations, illusion or not really present.

Good thing in this ipo is retail only 10% so selling pressure in pre open will be less. Second thing is only risk taker and patience people will apply here and these people will not sell below the issue price. Third point gmp is very less so very few people have sold it in grey market.
So my sixth sense is saying it will not close below the issue price on listing day at the end of the day.

Those who are applying, react here.
👍👍👍👍👍👍👍👍👍👍👍

I'll decide after 15X-20X QIB.

Business Model (Digit, Acko, Navi):

Go DIGIT is the fastest & largest digital full stack insurance player in India among its peers ACKO & NAVI.

All the data entry is done by customer itself. Customer can edit and modify the data at any time. There is no proper verification from the company side except for the disclaimer that all the data entered by customer is true and genuine.

The problem with these companies could be inability to verify and ensure the accuracy and completeness of information provided by customers that may lead to fraud, misrepresentation and other similar risks.

Acko and Go Digit are always suspicious on their low pricing. That always is a red flag, and they may come up with frivolous reasons to reject claims in future.

Since these companies started as start-ups and to gain the trust of the customers and market share they were easily accepting claims of smaller values. Apparently for bigger claims they may do anything to reject the claims in future.

For bumper QIB & Anchor subscription, the name 'Finance' or 'Insurance' is just enough. So it wont be a surprise that Digit will be subscribed heavily at the end.

​@Ram Bhakt  What you say ??

QIB toh aadhar m bhi aaye the , firbhi listing bekar hui

Get set ..goooooo
Shni sub to 5000...

Applied 6 bhni, 20 retail

​@Tejas Pandya  Many will come apart from you if QIB will come in time. 😄😄

Management not came to any media house for an interview, it's promotion time they came with an IPO but they are hiding, it's all upto investors to go as per RHP.
I strongly believe whatever HNI application (very less application with very high volume) placed so far are just to manipulate investors.
If discount listing it takes months to achieve IPO base price.
I might be wrong but these are the feelings I have after going through various information available/provided.

आमदनी अठन्नी खर्चा रुपइया

​ @Ishq With Risk Management have given lengthy interviews with most media houses - you'll find them online on YT

​@MuStrFc and @rohiitian  sir thanks for update and correcting me.
mostly I watch only Anil Singhvi show on zee business, they did not appear on that channel was my reference, I learnt a lot from both of you with your inputs, keep enlighten us in upcoming issues too 🙏.

Why , Go Digit revenue is almost same as profit/lose ?
Why , no OFS in any PSU ,since long ?
Somebody pls. throw some light .

Qib kitna paisa lagayenge any idea?

With excellent anchor list and if QIB subscription comes close to 60 times, and with only 25% retail allocation... what could be the probability of a discount listing ? -- I suppose very very less.

My point is only from listing gains and not medium/long term.

So it all boils down to QIB subscription. And bHNI looks to be sure shot allotment.

While factors like GMP, Anchor List, QIB participation etc play some role in IPO success, it is more of inherent strengths of company compared to peers, valuations and profitability visibility that must be taken into account. IMO, this counter does not appear to be too exciting in current scenario and possibility of negative listing can not be ruled out.
PS: This is just a view and I am no expert.

60X QIB means 47000 cr. + Amount, definitely that much Participation gives an extra Cushion. But these are just assumptions; considering the market volatility it can't be ruled out completely.

Hey...Can someone tell me what crossed out username means ? @sang username I see is crossed out.

Does it mean he has been removed by the admin or he disabled his account himself ?

Admin sir, sang is a knowledgeable member, his guidance is very helpful for us, I don't know why you blocked him, but I request you to please unblock sang.

​@Admin @ Chittorgarh.com @Prachi @ Team Chittorgarh.com

​@RAJ ARYA 
Sang sirs account was disabled as we found that he was here to promote his Twitter account.

Most of the metrics that people are bashing Digit on TV, are not fair for such a company. People celebrated Zomato & PB Fintech when they turned a profit, but Digit is coming already profitably, and folks are complaining about astronomical PE & RoNW - that is obvious. Zomato PE is eyewatering, but it's being valued on future, not past.

Digit's numbers also have to be seen in light of the nature of the biz. Insurance businesses are such that revenues recognized over duration of policy, but expenses on day 1, which means, faster you grow, more expenses get front loaded, while revenue is distributed - so its PnL will look weaker than a similar structure non-growing biz.

ICICI Lombard is the best peer, and Digit is cheaper than ICICI on scale related metrics. Digit's is at 2.8x it's GWP, while Lombard is at 3.5x. Digit is ~3x revenue, while Lombard is at 4x. Digit growing 30% YoY vs Lombard at 18%. Many operational parameters are rapidly improving for Digit. If one believes technology will in long term reduce cost of servicing, and help accelerate growth, profits will come and market will value it. Remember Digit is a 6 yr old company at this scale of Premiums.

This is a prelim view, but as of now I am earmarking some funds for this IPO - and may go HF or FF depending on QIB interest.

My threshold is very low - even 10x QIB, I'll go FF @CA Deepak

​@CA Deepak I am looking for 20x, better if it goes higher.

Go Digit General Insurance Limited IPO

Final Verdict

High Risk Takers Can Apply For Small Listing Gains And Long-term

Highlights of the Issue :
Date : 15-17 May
Price Band : 258-272
M.cap : 24948 cr
Size : 2615 cr
Fresh - 1125 cr
OFS - 1490 cr

Everyone Must Read Full Thread

Objects Of The Issue :

1.Maintenance Of Solvency Ratio - 1125 cr

Key Pointers :
1.The Company Will Be Able To Maintain The Solvency Ratio Advised by the Regulator Post Fresh
Capital Infusion

2.It Has Products Like Motor, Health, Travel, Property, Marine, Liability Insurance

3.The Company Has A Strong Leadership In The Motor Insurance With 6% Share and Is The Only Insurer in Top 5 Who Have Gained Market Share

4.The Company Is India's 1st, Largest And 1st To Get Listed
As A Digital Full Stack Insurer(DFSI) With 82.5% Market Share with Respect to GWP

5.The Company Has
Access At Pan-India Level Due to Wider Reach Due to Tech Enabled Approach

Positives :
1.The Company Is Fully Operated on Cloud With 1900+ API Integrations With 3.5 cr Policies Issued since Inception Completely Relying on The API Integration

2.Due To This Technological Advancement,
The Cost Of The Infrastructure And Related Expenses Reduces,
This Enables the company to offer policies At Comparatively Lower Rates To Customers

3.The Company Had Grown 52% in FY23 And At 38% In FY24 Considering TTM Growth
Which is More Than Triple Than Industry
It's Closest Listed Peer Is Growing At 17%

4.The Company Has Better Underwriting
Compared To The Industry, The Claims Ratio is At 69.6% which is lowest in the industry

5.The Retention Ratio of 84.3% is Impressive For A
6 yr Old Startup

6.The Anchor Book Built is Very Strong With Top Notch FIIs And DIIs Translating The Future Prospects of the Company

Negatives :

1.Higher Concentration Towards Motor Insurance Which Is Around 60% GWP

2.Lower RoNW Than Peers

3.Lower Solvency Ratio Compared To Peers

4.The Commission Ratio is Higher in the industry i.e 25×

5.The Company Is Still In Operating Losses, The Profits Shown Are Due to Appreciation in the Value of Investments

6.The Company Has Recieved Many Show Cause Notices & Pending Litigations From Regulators Which Is A Caution

Forward Earnings Projections :
FY 23
Income : 5886 cr
PAT - 35.5 cr

Till Q3 FY24 :
Income : 5891 cr
PAT : 129 cr

Q4* :
Income : 2179 cr
PAT : 68 cr

Total FY24 :
Rev - 8070 cr
PAT - 197 cr

FY 25 :
Rev - 10655 cr
PAT - 384 cr

PE FY23 : 702×
PE FY24 : 126×
PE FY25 : 63.7×

*Q4 Sees More Policy Issuances Due To Tax Planning Although The Margins Wouldn't Be Improved But The Quarter Can Be Better

And These Estimates Cannot be Perfect As Insurance Industry Calculations aren't Straight Forward And The Profits May Dip Or Even Increase Much Higher

Valuing Insurance Company On PE Is Wrong

Let's Value By GWP Multiple

Go Digit : 2.8×
ICICI Lombard : 3.6×

On FY25 GWP : 2.1×
Go Digit : 3.1×

Rev Multiple :
FY24 -
Digit : 3.1×
ICICI Lombard : 4×

FY25 -
Digit : 2.34×
ICICI Lombard : 3.4×

Giving It A 30% Discount To It's Exact Peer ICICI Lombard Due to Supreme Ratios

Fair Price Comes At 356,
Indicating An Upside Of 31%

There is Many More Points To Discuss But Can't Due To Time Constraints,
Overall A Good IPO With Okayish Valuations

Only High Risk Takers Should Apply For Listing Gains,
Even For Long-term Only Risk Takers Should Hold Due to Unpredictability in the Sector And This Sector Isn't An Investor Rewarding One

Please Note :
This Information is Only For Eduacational Purposes And
Person Views
DYDD

​@RPM That is not how the Retention Ratio is defined. It is defined as Net Written Premium divided by Gross Written Premium. A Retention Ratio of 100% just means that the company is keeping all the insured risk and not selling any to a reinsurer.

Retention ratio is a different matter . It relates to reinsurance. Company formulates it's retention limit on the basis of it's experience.
Retention ratio is that part of gross written premium which is net of reinsurance. In other words net premium divided by gross written premium.
84.3% retention ratio means that 15.7 % of GWP is reinsurance outlay.
Historical data shows that the ratio may vary between 35% to 90% in different business category depending on the nature and ticket size of the business at any span of time for a company . Even for the same company there may be wide variation from time to time. It's nothing good or bad .It is necessity for keeping the risk within tolerable limit.

Some leading media channels are projecting high profile investors (Virat Kohli & family) as BIG PLUS for the company. Do you endorse this as any factor to apply in IPO?

Of course not, this is similar to how Shilpa Shetty made OFS exit during HONASA, but how many applied owing to this fact, if any, has little to no relevance. Anyhow, those high profile names aren't investors themselves mostly and have a whole bunch of people advising them strategically. So, the name of the investor and the person on whose basis the investment decision was made might be different altogether. @Chhote Lal

​@Chhote Lal Ji, 5paisa app is showing the same shit, I can't believe they are doing this in an IPO.