HDFC Bank, Axis Bank Sign Definitive Agreements With Go Digit Life Insurance
HDFC Bank and Axis Bank on Saturday intimated stock exchanges that they would acquire up to a 9.94 per cent stake in insurtech startup Go Digit Life Insurance.
HDFC Bank said that it has executed definitive agreements to invest Rs 69.90 crore in the insurtech firm in two tranches and has made the first tranche of payment of Rs 10.93 crore for the acquisition.
Similarly, Axis Bank also executed definitive agreements to invest Rs 69.90 crore in two tranches and has made the first tranche of payment of Rs 10.93 crore for acquisition.
The transaction is expected to be completed by 3-6 months from the execution date.
The first tranche investment is subject to IRDAI granting requisite approval to Go Digit Life for the application filed by Go Digit Life under IRDAI/R2, said the banks.
Go Digit General Insurance plans to hit the market through an initial public offer later this year or early next year.
Founded in 2017 by Kamlesh Goyal, it offers insurance policies across verticals like health, auto, travel, and commercial properties such as stores and holiday homes.
As per its draft red herring prospectus (DRHP), the initial public offering will include a fresh issue of Rs 1,250 crore and an offer for the sale of 10.94 crore shares.
