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Fairfax-backed Digit Insurance files draft papers for initial public offering in India

Fairfax Holdings CEO Prem Watsa speaks at the annual shareholders meeting in Toronto April 9, 2014. REUTERS/Mark Blinch

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BENGALURU, Aug 16 (Reuters) – India’s Digit Insurance, backed by Canadian billionaire Prem Watsa’s Fairfax Group, has applied for an IPO, papers filed with the Markets Regulator on Tuesday showed.

Founded in 2017, Digit seeks to expand its presence in India’s underdeveloped general insurance market by offering a better customer experience including easier claims settlement.

The IPO consists of a new issuance of shares worth Rs. 12.5 billion, while existing shareholders will sell up to 109.4 million shares, the prospectus showed.

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The entire IPO is expected to be worth 35 billion rupees ($440 million), according to a person with direct knowledge of the matter. Digit Insurance declined to comment on the size of the IPO.

Reuters first reported on May 25 Digit Insurance’s plans to raise $500 million via an IPO. Continue reading

Morgan Stanley (MS.N) and local investment banks ICICI Securities (ICCI.NS), Axis Capital, Edelweiss Financial Services (EDEL.NS), HDFC Bank (HDBK.NS) and IIFL Securities (IIFS.NS) are leading the IPO.

($1 = 79.4210 Indian Rupees)

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Reporting by Chris Thomas in Bengaluru and M. Sriram in Mumbai; Edited by Subhranshu Sahu and Tom Hogue

Our standards: The Thomson Reuters Trust Principles.

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