For the second time in two months, Peak XV Partners sold shares worth nearly ₹139 crore in insurtech company Go Digit via a block deal, according to NSE data. The sale involved 57.2 lakh shares at ₹243 each, executed at a 4.1% discount to the stock’s previous close. ICICI Prudential Mutual Fund purchased the shares. This follows a June block deal where Peak XV offloaded ₹100 crore worth of Go Digit shares, inc42.com reported.
The recent block deal coincides with a sell-off in Go Digit’s stock, which hit an all-time low of ₹245 on the BSE on July 28. The stock has declined about 21% in the past month and 26.7% year-to-date. The sell-off follows multiple challenges, including a ₹384.4 crore tax demand notice from the Income Tax department for assessment year 2023-24. Additionally, Go Digit’s financial performance has been subdued, with profits falling 37.5%, inc42.com noted.
This share sale by Peak XV Partners reflects growing investor caution amid Go Digit’s operational and regulatory hurdles. The company recently received approval from the Competition Commission of India to merge its holding entity, Go Digit Infoworks Services Pvt Ltd, with Go Digit General Insurance, making the latter the sole surviving entity. Despite this consolidation, the stock’s decline highlights investor concerns over the insurtech’s outlook in a competitive market, inc42.com stated.
The block deal executed on July 28 marks Peak XV Partners’ continued reduction of its stake in Go Digit within a short span. The next key event for Go Digit will be its upcoming quarterly financial results, which investors will scrutinize for signs of recovery amid ongoing headwinds, inc42.com reported.