According to a source with direct information and regulatory paperwork submitted on Tuesday, India’s Digit Insurance, funded by Canadian billionaire Prem Watsa’s Fairfax Group, plans to raise roughly $440 million through an initial public offering (IPO), according to reports quoting information from sources with direct information and according to regulatory paperwork submitted on Tuesday.
Digit, which was founded in 2017, is attempting to grow its footprint in general insurance by providing a better client experience, including speedier claim settlement.
According to the prospectus filed by the company on Tuesday, the IPO would consist of a new issue of shares worth 12.5 billion Indian rupees ($158 million).
Large current owners will also sell up to 109.4 million shares, the company stated, without stating how much money will be raised.
According to a source close to the situation, the sale would raise approximately $282 million, bringing the overall IPO size to approximately $440 million.
There were no comments available from Digit on the overall size of the IPO.
On May 25, Reuters first reported Digit Insurance’s ambitions to raise capital through an IPO.
The IPO is being managed by Morgan Stanley and local investment banks ICICI Securities, Axis Capital, Edelweiss Financial Services, HDFC Bank, and IIFL Securities.
According to papers, Digit recorded an overall income of $571.70 million for the fiscal year ended in March, up from $362.23 million the previous year. Its losses increased from $15.47 million to $37.29 million.
Digit intends to use the IPO funds to strengthen its balance sheet and preserve cash reserves, as required by the insurance regulation.