Axis Bank to acquire stake in Go Digit Life Insurance

28 Sep 2022 , 10:23 AM

Axis Bank, the third-largest private sector lender in the nation, would spend about Rs50 to 70 crore to buy less than 10% of Fairfax-backed Go Digit-LifeLife Insurance. Max Life Insurance Company is already promoted by the lender.

With regard to the proposed investment of up to Rs 70 crore in two tranches by purchasing stock in the insurer, Axis Bank and Go Digit-Life Insurance have engaged in an indicative and non-binding term sheet. In a regulatory filing, the lender stated its intention to buy up to a 9.94% ownership holding in Go Digit-Life Insurance.

According to Axis Bank, the equity purchase is contingent on the execution of formal agreements, the terms, and conditions of which must be mutually agreed upon. The Insurance Regulatory and Development Authority of India must first award the company a certificate of registration before it may conduct life insurance business in India, it stated.

Axis Bank owns a 12.99% interest in Max Life Insurance along with its two subsidiaries, Axis Capital and Axis Securities. In the near future, the lender wants to increase the shareholding to roughly 20%. Axis Bank’s shares decreased by 0.69 % to end at Rs737.30 a share on the BSE

For feedback and suggestions, write to us at [e-mail]