Celebrity power couple Virat Kohli and Anushka Sharma are poised to reap significant returns of 271% as Go Digit, a Bengaluru-based insurance startup, prepares to go public next week. Their initial investment of Rs 2.5 crore is expected to skyrocket to Rs 9.25 crore, generating a staggering notional profit of Rs 6.75 crore, as per a report by ET.
In January 2020, cricketer Virat Kohli acquired 266,667 shares at Rs 75 per unit through private placement, amounting to a total investment of approximately Rs 2 crore. The upcoming IPO of Go Digit, valued at Rs 2,615 crore, will be open for subscription from May 15-17, with shares priced between Rs 258 and Rs 278. Currently, the shares are trading at an 18% premium in the grey market.
At the upper price band, Kohli’s investment would be valued at around Rs 7.4 crore, with the potential for further gains if the shares debut at a premium. Anushka Sharma also invested Rs 50 lakh in the company, purchasing 66,667 shares at Rs 75 each. At the upper price band, her investment would be worth approximately Rs 1.85 crore. Together, they anticipate notional profits of Rs 6.75 crore.
Reports suggest that Kohli is among the world’s 100 richest sportspersons, with a net worth exceeding Rs 1,000 crore, while Sharma has accumulated around Rs 300 crore. The Go Digit IPO comprises a fresh issue of shares worth Rs 1,125 crore and an offer for sale (OFS) of 54,766,392 shares. The OFS, at the upper price band of Rs 272, would be valued at approximately Rs 1,489.64 crore.
Investors can bid for a maximum of 55 equity shares and in multiples of 55 shares thereafter. The IPO allocation is divided as follows: 75% for qualified institutional buyers (QIB), 15% for non-institutional investors, and 10% for retail investors.
The PE ratio, based on the diluted EPS for 2023, at the upper range of the price band is 680x, compared to the average industry peer group of 46.13x. In the IPO, promoter Go Digit Infoworks and other existing shareholders are reducing stakes, while Kohli and Sharma will retain their positions as investors.