HDFC Bank to invest Rs 120 crore in Go Digit Life for 9.94% stake

In a stock exchange filing, HDFC Bank said it will invest between Rs 49.9 crore to Rs 69.9 crore in two tranches to acquire up to 9.94% equity stake in the Fairfax-backed company

HDFC Bank
HDFC Bank (Photo: Bloomberg)
BS Reporter Mumbai
2 min read Last Updated : Aug 25 2022 | 7:37 PM IST
HDFC Bank on Thursday said it has entered into an indicative and non-binding term sheet with Go Digit Life Insurance, wherein the bank is looking to invest around Rs 120 crore in the company for a 9.94 per cent stake.

Go Digit Life has applied to the insurance regulator for a license to carry out life insurance business in the country and is awaiting certificate of registration by the Insurance Regulatory and Development Authority of India (Irdai).

Kamlesh Goyal-backed Go Digit is looking to bag a life insurance as well as reinsurance license from the regulator.

Recently, Go Digit General Insurance filed draft papers with the market regulator to raise around Rs 5,000 crore through an initial public offering (IPO) that will include fresh issuance of equity shares and an offer-for-sale.

Post the merger of HDFC Ltd into HDFC Bank, the bank will become the promoter of HDFC Life Insurance as well HDFC Ergo General Insurance.

As per Irdai regulations, a bank can’t promote more than one insurance company in the same segment. An entity holding over 10 per cent in an insurance company is categorised as a promoter while one holding below that limit is termed as an investor.

So, HDFC Bank’s investment in Go Digit Life is as an investor.

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :HDFC BankGeneral Insurance

Next Story