Hyundai Motor India shares slip to Rs 1,745, down over 10 pc of IPO price
Shares of Hyundai Motor India, that were listed at Rs 1,931 apiece, have slipped more than 10 per cent from its IPO price.
Go Digit General Insurance Ltd, an insurance firm bullish in the online space, got the Market regulator Securities and Exchange Board of India (SEBI) nod to launch its initial public offering (IPO).
The firm, backed by cricketer Virat Kohli and his wife Anushka Sharma, hit many hurdles over compliance issues resulting in a delayed approval for the public offer.
According to the Draft Red Herring Prospectus (DRHP), Go Digit’s proposed IPO comprises fresh issuance of shares worth Rs 1,250 crore and an Offer For Sale (OFS) of 10.94 crore shares by promoter Go Digit Infoworks Services and existing shareholders.
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SEBI said that the regulator gave its observation on March 1. In SEBI’s parlance, obtaining an observation letter means the regulator’s go-ahead to launch the public issue.
The Proceeds from the fresh issuance would be utilised for the augmentation of the company’s capital base, maintenance of solvency levels and general corporate purposes.
Go Digit General Insurance Ltd is also backed by Canada-based Fairfax Group.
It had first filed the DRHP with SEBI in August 2022 to raise funds through an initial share sale which was thwarted primarily due to certain compliance requirements pertaining to the employee stock appreciation rights scheme.
Further, the market regulator returned Go Digit’s draft IPO papers on January 30, 2023, and asked the company to refile the documents with certain updates.
In November last year, Digit General Insurance filed an addendum to its IPO documents, stating that the IRDAI issued it a show-cause notice related to its non-disclosure of change in the conversion ratio of the compulsorily convertible preference shares, issued to Fairfax.
Later in January 2023, SEBI had returned its offer document, making observations on the lock-in period for promoters and shareholders, and its employee stock options.
The company rectified the issues and refiled the offer document on April 6.
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