Axis Bank has entered into “an indicative and non-binding term sheet” with Go Digit Life Insurance and would invest INR 49.90 Cr to INR 69.90 Cr in the latter
Last month, HDFC Bank announced investment of the same amount in Go Digit Life Insurance
The arm of IPO-bound Go Digit General Insurance proposes to carry out life insurance business in India, subject to IRDAI’s approval
Following almost a month of speculations, Axis Bank has confirmed that it would acquire up to a 9.94% stake in insurtech startup Go Digit Life Insurance.
Axis Bank has entered into “an indicative and non-binding term sheet” with Go Digit Life Insurance and would invest an amount of INR 49.90 Cr to INR 69.90 Cr in two tranches to acquire up to 9.94% stake in the latter, the banking major said in an exchange filing.
The bank will provide requisite and complete disclosure under Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Regulations after the signing of the definitive agreement, it added.
Go Digit Life Insurance proposes to carry out life insurance business in India, subject to grant of certificate of registration by the Insurance Regulatory and Development Authority of India (IRDAI).
Last month, the country’s largest private sector lender HDFC Bank also announced an investment of INR 49.9 Cr to INR 69.9 Cr in IPO-bound Go Digit General Insurance’s life insurance arm to acquire an equity stake of up to 9.94%.
Backed by Fairfax and Sequoia, Go Digit General Insurance is planning for an initial public offer later this year or early next year. The total size of the IPO is reportedly INR 5,000 Cr.
However, the Securities and Exchange Board of India (SEBI) has kept Go Digit General Insurance’s proposed IPO in ‘abeyance’.
Without explaining any further reason, SEBI in its document on ‘processing status of draft offer documents’ recently said that the startup’s “issuance of observations kept in abeyance”.
The insurtech startup, founded in 2017 by Kamesh Goyal, offers insurance policies across verticals like health, auto, travel, and commercial properties such as stores and holiday homes. It claims to have served over 20 Mn customers across car, bike, health and travel insurance segments, as per its website.
As per its draft red herring prospectus (DRHP), the startup’s IPO will include a fresh issue of INR 1,250 Cr and an offer for sale (OFS) of 109.45 Mn shares.