Sebi Clears Fairfax-backed Digit’s IPO After Delay

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India’s regulatory authority, the Securities and Exchange Board of India (Sebi), has granted approval for Digit Insurance to proceed with its initial public offering (IPO), following delays due to compliance issues. Originally planned for 2022, Digit’s $3.5 billion valuation faced setbacks as Sebi expressed concerns about the legality of certain share issuances, reported Reuters.

Digit, operating in the general insurance sector and backed by Canadian billionaire Prem Watsa’s Fairfax Group and A91 Partners, filed for the IPO in August 2022. Despite interruptions, the company, after addressing the compliance issues, refiled its IPO papers with Sebi in March last year. A letter sent on Friday to Digit and its IPO advisers, seen by Reuters, stated, “The proposed issue can open for subscription within a period of 12 months.”

While the letter did not specify earlier compliance issues or Sebi’s position, sources familiar with it indicated that the regulator is now satisfied with the IPO application. Digit declined to comment, and Sebi has not yet responded to requests for comment.

Digit intends to market its IPO to prospective investors over the next month, aiming for a listing by May, according to a person with direct knowledge of the matter. The company plans to raise 12.5 billion rupees ($151 million) through its listing, in addition to an offer for the sale of 109.4 million shares, as outlined in its prospectus.

Digit’s listing plans align with the current record boom in India’s stock markets and public listings. Bankers anticipate 2024 to be one of the country’s most significant years for IPOs, reported Reuters earlier.

 

bharat bannaer

 

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Sebi Clears Fairfax-backed Digit’s IPO After Delay


News Update

India’s regulatory authority, the Securities and Exchange Board of India (Sebi), has granted approval for Digit Insurance to proceed with its initial public offering (IPO), following delays due to compliance issues. Originally planned for 2022, Digit’s $3.5 billion valuation faced setbacks as Sebi expressed concerns about the legality of certain share issuances, reported Reuters.

Digit, operating in the general insurance sector and backed by Canadian billionaire Prem Watsa’s Fairfax Group and A91 Partners, filed for the IPO in August 2022. Despite interruptions, the company, after addressing the compliance issues, refiled its IPO papers with Sebi in March last year. A letter sent on Friday to Digit and its IPO advisers, seen by Reuters, stated, “The proposed issue can open for subscription within a period of 12 months.”

While the letter did not specify earlier compliance issues or Sebi’s position, sources familiar with it indicated that the regulator is now satisfied with the IPO application. Digit declined to comment, and Sebi has not yet responded to requests for comment.

Digit intends to market its IPO to prospective investors over the next month, aiming for a listing by May, according to a person with direct knowledge of the matter. The company plans to raise 12.5 billion rupees ($151 million) through its listing, in addition to an offer for the sale of 109.4 million shares, as outlined in its prospectus.

Digit’s listing plans align with the current record boom in India’s stock markets and public listings. Bankers anticipate 2024 to be one of the country’s most significant years for IPOs, reported Reuters earlier.

 

bharat bannaer

 

Follow Startup Story





Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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