Go Digit General Insurance Ltd, backed by Canada's Fairfax Group, has received approval from Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO), according to an update filed with the regulator on Monday. The approval came after the company's preliminary IPO papers were initially filed in August 2022.

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According to the draft red herring prospectus (DRHP), Go Digit's proposed IPO will include a fresh issuance of Rs 1,250 crore in shares and an Offer For Sale (OFS) of 10.94 crore shares by promoter Go Digit Infoworks Services and existing shareholders.

The proceeds from the new issuance would be used to augment the company's capital base, maintain solvency levels, and for general corporate purposes.

The firm's investors include cricketer Virat Kohli, his wife, and actress Anushka Sharma.

According to an update filed with the Sebi (Securities and Exchange Board of India) on Monday, the regulator issued its observation on March 1.

In Sebi parlance, obtaining an observation letter means that the regulator has given the go-ahead to launch the public issue.

The company first filed the DRHP with Sebi in August 2022 to raise funds through an initial share offering. However, it was thwarted primarily due to certain compliance requirements related to the employee stock appreciation rights plan.

On January 30, 2023, Sebi returned Go Digit's draft IPO papers and requested that the company refile them with certain updates. Following this, the company submitted preliminary IPO papers to Sebi again in April 2023.

Go Digit provides auto insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other insurance products to meet the needs of its customers.

It is one of India's first non-life insurers to operate entirely on the cloud, and it has created application programming interface (API) integrations with a number of channel partners.