Axis Bank and HDFC Bank have entered into a definitive agreement to invest up to Rs 69.90 crore in Go Digit Life in two tranches. The banks will acquire a 9.94% stake in Go Digit Life for Rs 10 per share. The first tranche of Rs 10.93 crore will be paid by the banks, and they may invest an additional Rs 58.97 crore in the second tranche. The acquisition is expected to be completed within three to six months from the execution date.
Go Digit Life intends to operate in the life insurance sector in India, subject to receiving a certificate of registration from the Insurance Regulatory and Development Authority of India (IRDAI). The company was established as a private limited company under the Companies Act, 2013, on December 16, 2021, as “Go Digit Life Sciences Private Limited.” It was subsequently converted into a public limited company on May 10, 2022, and renamed “Go Digit Life Insurance Limited” on June 02, 2022.
As per the unaudited financial statements for the year ended March 31, 2023, Go Digit Life had zero turnover and incurred losses of Rs 5.36 crore, with total assets worth Rs 26.42 crore. The investment by Axis Bank and HDFC Bank will provide Go Digit Life with additional financial resources to bolster its position and expand its operations in the life insurance sector.
This story was first published by InsuranceNewsAsia.com