After allaying the concerns of the market regulator regarding the company’s employee stock plans, which had stalled the offering for months, India’s Go Digit Insurance has re-filed draft papers for a $440 million initial public offering (IPO).
According to the draft prospectus, which was filed on March 30 and remains unchanged from its previous filing, the IPO will include a new offering for the sale of 109.4 million shares and a new issue of shares worth 12.5 billion rupees (about $152.1 million).
In August of last year, Digit, which operates in the general insurance industry and has the backing of Canadian billionaire Prem Vats’ Fairfax Group and TVS Capital Funds, made its initial application for an initial public offering.
However, due to issues with share issuance compliance, the Securities and Exchange Board of India (SEBI) put its listing plans on hold in September. Later that month, a review was resumed by SEBI.
In a private letter in January of this year, SEBI raised a number of compliance issues pertaining to employee stock plans, which caused the IPO to experience yet another setback.
Digit told Reuters in January that it was assessing alterations to its representative stock appreciation freedoms plan in the wake of accepting Sebi’s letter.
Such privileges given by the organization empower a representative to get a reward equivalent to the expansion in the offer cost of the organization over a predefined period, which is limited to organizations opening up to the world in Indian guidelines.
According to Sebi’s letter, Digit was found “not eligible to make an initial public offer” as a result.
Reuters reported that the IPO will be halted until the company refilled regulatory paperwork and converted employee stock rights into stock option plans.
According to Go Digit’s most recent filing, the company approved the stock option plan on March 27 and converted its employee stock rights into stock options.
General insurance services are offered by the $3.5 billion company that was previously owned by Sequoia Capital.
The IPO proceeds will be used to maintain the company’s solvency ratio, the plan states.
The text of this story is distributed from a wire organization feed with no change.