~10% of Go Digit-Life Insurance will be purchased by HDFC Bank

To purchase up to a 9.94% equity ownership in the firm, HDFC Bank would spend Rs49.9 crore to Rs69.9 crore in two tranches.

August 26, 2022 8:46 IST | India Infoline News Service

On August 25, HDFC Bank said that it will invest between Rs49.9 crore and Rs69.9 crore in Go Digit-Life Insurance in two installments to purchase up to a 9.94 % ownership investment in the business.

An "indicative and non-binding term sheet with Go Digit-Life Insurance" was signed, according to the private lender. The Insurance Regulatory and Development Authority of India (IRDAI) must first award the insurance firm a certificate of registration before it may conduct life insurance business in India, according to a statement from HDFC Bank.

On Thursday, shares of HDFC Bank finished at Rs1,463.85 a share, down 0.51 % from the previous close on the BSE. In the meantime, Go Digit General Insurance Ltd., supported by Fairfax Group, has submitted draft documents to market regulator SEBI in order for an Initial Public Offering (IPO).

The IPO would include a fresh issue of equity shares worth Rs1,250 crore and an offer-for-sale (OFS) of 10,94,45,561 equity shares by a promoter and existing shareholders, according to the draft red herring prospectus (DRHP). Go Digit Infoworks Services Pvt Ltd is selling 10,94,34,783 equity shares through the OFS. The business may also think about pre-IPO placements of equity shares totaling up to Rs250 crore. If such a placement is successful, the size of the new issue will be decreased.

Go Digit provides a variety of insurance products to suit the needs of its clients, including liability insurance, health insurance, travel insurance, property insurance, and marine insurance. One of the first non-life insurance companies in India to function entirely in the cloud, it has created application programming interface (API) interfaces with a number of channel partners.

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