Axis Bank and HDFC Bank announced on Saturday that they would acquire up to 9.94% of the capital of insurtech start-up Go Digit Life Insurance.
Axis Bank and HDFC Bank announced on Saturday that they would acquire up to 9.94% of the capital of insurtech start-up Go Digit Life Insurance.
In its regulatory filing, HDFC Bank said it had signed definitive agreements to invest ₹69.90 crore in Go Digit Life Insurance Ltd in two tranches.
In its regulatory filing, HDFC Bank said it had signed definitive agreements to invest ₹69.90 crore in Go Digit Life Insurance Ltd in two tranches.
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She said she made the first payment installment of ₹10.93 crore for acquisition.
The bank said the second tranche of ₹58.97 crores will occur after completion of the initial subscription, in accordance with the definitive agreements.
HDFC Bank Limited (the “Bank”) signed definitive agreements on 21 April 2023 to invest an amount of up to Rs. 69.90 crores in Go Digit Life Insurance Limited (“Go Digit Life”) in two tranches, subject to the terms and conditions set forth in the definitive agreements. In accordance with the definitive agreements, the consideration to be paid for the acquisition of 9.94% of the share capital of Go Digit Life (by way of share subscription) in the first tranche amounts to approximately Rs. 10.93 crores (“Initial Subscription”). The Bank, at its discretion, may choose to invest the remaining amount up to Rs. 58.97 crores in the second tranche after the completion of the initial subscription, in accordance with the definitive agreements.
Axis Bank has signed definitive agreements to invest ₹69.90 crore in Go Digit Life Insurance Ltd in two tranches. She said she made the first payment installment of ₹10.93 crore for acquisition.
The transaction is expected to be finalized within 3 to 6 months from the date of execution.
The investment of the first tranche is subject to IRDAI granting the required approval to Go Digit Life for the application filed by Go Digit Life in Form IRDAI/R2, the banks said.
Backed by Fairfax and Sequoia, Go Digit General Insurance is planning an initial public offering later this year or early next year.
It was founded in 2017 by Kamesh Goyal, offers insurance policies in verticals such as health, automotive, travel and commercial properties such as shops and vacation homes. It claims to have served more than 20 million customers in the car, bike, health and travel insurance segments, according to its website.
According to its Red Herring Prospectus Project (DRHP), the startup’s IPO will feature a new issue of Rs 1,250 crore and an offer to sell (SFO) of 109.45 million shares.