India’s Go Digit Insurance, backed by Virat Kohli and Fairfax Group, has refiled its draft papers for a $440 million initial public offering (IPO) after addressing the concerns of the Securities and Exchange Board of India (SEBI) regarding the company’s employee stock plans.

Go Digit offers various insurance products and aims to be a significant player in India’s underpenetrated general insurance market. The IPO comprises a fresh issue of shares worth $152.1 million and an offer for sale of 109.4 million shares, while shareholders and promoters will offer the remaining shares.

Digit, one of the first non-life insurers in India to be entirely operated on the cloud, offers motor, health, travel, property, marine and liability insurance, among other products. It has developed application programming interface integrations with several channel partners.

The SEBI had previously rejected an attempt by Go Digit Insurance to file IPO papers in September 2021, citing concerns over the company’s employee stock plans. The IPO faced another setback in January 2022 after SEBI raised compliance issues related to employee stock plans in a private letter.

SEBI had returned the draft papers of six companies, including Go Digit, seeking to raise Rs 12,500 crore from the primary market.

SEBI had disallowed the companies going public from offering their employees the right to receive a bonus equivalent to the company’s stock price increase over a certain period. As a result, Digit was deemed ineligible to make an initial public offer by SEBI.

In response, Digit stated it was considering modifying its employee stock appreciation rights plan. According to the latest filing, Digit has now switched to stock option plans after obtaining approval through a special resolution on March 27.

Go Digit Insurance aims to use the IPO proceeds to augment its capital base and maintain its solvency levels. The IPO is expected to contribute to Digit’s growth in the Indian general insurance market, which remains underpenetrated.