Axis Bank and HDFC Bank have signed a definitive agreement to invest a total of up to Rs 69.90 crore in Go Digit Life in two tranches, according to an exchange filing.
As part of the deal, the banks will acquire a 9.94% stake in Go Digit Life for Rs 10 per share. In the first tranche, the banks will pay Rs 10.93 crore, and they may choose to invest Rs 58.97 crore in the second tranche.
The acquisition is expected to be completed in three to six months from the execution date.
Go Digit Life aims to operate in the life insurance business in India, subject to receiving a certificate of registration from the Insurance Regulatory and Development Authority of India (IRDAI).
The company was incorporated as “Go Digit Life Sciences Private Limited” on December 16, 2021, as a private limited company under the Companies Act, 2013.
It was later converted to a public limited company on May 10, 2022, and changed its name to “Go Digit Life Insurance Limited” on June 02, 2022.
According to unaudited financial statements for the year ended March 31, 2023, Go Digit Life had a turnover of NIL and incurred losses of Rs 5.36 crore.
The company’s total assets were valued at Rs 26.42 crores. The investment by Axis Bank and HDFC Bank will allow Go Digit Life to strengthen its financial position and advance its growth plans in the life insurance sector. – InsuranceNewsAsia.com