India's regulator clears Digit Insurance for IPO launch: Report

Bankers are anticipating 2024 to be one of the country's biggest years for IPOs.

India-based Digit Insurance received a green light from the Securities and Exchange Board of India to launch an initial public offering (IPO), as reported by Reuters.

After resolving compliance issues that previously delayed the deal, as per a letter seen by Reuters, it initially filed for an IPO in August 2022. However, the securities agency halted its plans twice, citing concerns over the legality of certain share issuances.

Digit was valued at $3.5b in its last funding round. Following efforts to address these issues, Digit, a player in the general insurance sector backed by Canadian billionaire Prem Watsa's Fairfax Group and A91 Partners, resubmitted its IPO papers to SEBI last March, which has now received approval.

According to the letter sent on Friday to Digit and its IPO advisers, the proposed IPO can open for subscription within 12 months.

Whilst the letter does not detail the earlier compliance issues or SEBI's stance, sources familiar with it suggest that the regulator is now satisfied with the IPO application.

Digit declined to comment on the matter, and SEBI did not immediately respond to requests for comment. The company plans to market its IPO to potential investors over the next month and aims for a listing by May.

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The IPO aims to raise $151m through its listing, along with an offer for the sale of 109.4 million shares, according to its prospectus.

Digit's listing plans align with a surge in India's stock markets and public listings, with bankers anticipating 2024 to be one of the country's biggest years for IPOs, as previously reported by Reuters.