Go Digit Share Price Stays Up After Calm Listing

Summary:
• The Go Digit share price made a mostly silent debut at the BSE but ended its first day on a win. We tell you why the upside will likely continue.

Go Digit share price spiked 9 percent on Thursday following a low-key post-IPO listing at the BSE. GODIGIT listed at Rs 286 and rose to a high of Rs 314.00 before closing at 305.75. However, that was still a relative success for investors, considering that the closing price was about 12.4 percent above the issue price of Rs 272. The IPO was worth Rs 2,614.65-crore, with an oversubscription of 9.6 times. Trading in the Go Digit shares officially began at 10.00 IST and was part of the pre-open session.

Although there was much excitement about the listing, the stock’s grey-market premium dropped significantly to around just Rs 25, which was about 9 percent above the issue price. The grey market premium is the price above the issue price at which investors are willing to buy a stock before listing.

Despite the low-key debut in the stock market, analysts opine that Go Digit’s fundamentals remain strong, and the share price will almost certainly rise further in the coming days. The company’s innovative approach to insurance is heavily built on technology-based predictive underwriting.

The fully digital stack approach to insurance has made it easier to onboard clients and given its agents a greater reach. This has seen Go Digit expand fast to become the fastest-growing non-life insurer in India. Its product range include motor insurance, health insurance, marine insurance, property insurance, travel insurance, liability insurance etc. While the listing was low-key, it was largely as a result of lukewarm grey market conditions, and the upside remains promising for the company.

Technical analysis

The momentum on the Go Digit share price favours the buyers above the 284 pivot mark and calls for further upside. The upward movement will likely encounter the first resistance at 297.45, but a move beyond that mark could strengthen the buying momentum further to push the price to 312.10. However, if the price goes below 284.00, the sellers will have the upper hand, and the downward action will likely find the first support at 278.30. Extended control by the sellers will break the support, and could propel the price to move lower and test 265.70 while invalidating the upside narrative.