HDFC Bank, Axis Bank Signs Definitive Agreements With Go Digit Life Insurance

In its regulatory filing, HDFC Bank said that it has executed definitive agreements to invest ₹69.90 crore in Go Digit Life Insurance Ltd  in two tranches.

It said that it has made the first tranche of payment of ₹10.93 crore for towards the acquisition.

The bank said that second tranche of ₹58.97 crore will happen post completion of the Initial Subscription, in accordance with the definitive agreements.

HDFC Bank Limited (the “Bank") has executed definitive agreements on April 21, 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 out in the definitive agreements. In accordance with the definitive agreements, the consideration to be paid for the acquisition of 9.94% in the equity share capital of Go Digit Life (by way of a share subscription) in the first tranche amounts to approximately Rs. 10.93 crores (“Initial Subscription"). The Bank, at its discretion, may elect to invest the remaining amount of up to Rs. 58.97 crores in the second tranche post completion of the Initial Subscription, in accordance with the definitive agreements.

Axis Bank has executed definitive agreements to invest ₹69.90 crore in Go Digit Life Insurance Ltd in two tranches. It said that it has made the first tranche of payment of ₹10.93 crore for towards the acquisition.

The transaction is expected to be completed by 3 to 6 months from the execution date. 

The first tranche investment is subject to IRDAI granting requisite approval to Go Digit Life for the application filed by Go Digit Life under Form IRDAI/R2, said the banks.

Backed by Fairfax and Sequoia, Go Digit General Insurance is planning for an initial public offer later this year or early next year. 

It was 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 rs 1,250 crore and an offer for sale (OFS) of 109.45 million shares.