HDFC Financial institution has entered right into a non-binding settlement to spend money on Fairfax-backed insurance coverage agency Go Digit Life Insurance coverage Ltd.
The financial institution is seeking to make investments between Rs 49.9 crore and Rs 69.9 crore for an fairness stake as much as 9.944% within the agency, in response to an change submitting. Whereas Go Digit has been working within the non-life insurance coverage section up to now, it’s seeking to enter life insurance coverage, topic to regulatory approvals.
Earlier this month, Go Digit Common Insurance coverage Ltd. filed its draft purple herring prospectus to boost funds through an preliminary public providing.
Based in 2017, Go Digit Common Insurance coverage provides insurance coverage in classes like well being, motor, fireplace and others. In FY22, Go Digit booked a internet lack of Rs 295 crore towards income value Rs 5,267 crore.
The agency has a buyer base of two.57 crore and has offered a complete of 77 lakh insurance coverage insurance policies up to now, in response to its DRHP. Go Digit Common Insurance coverage has raised a complete of $585.6 million (about Rs 4,679 crore) in funding and has been backed by buyers like Sequoia Capital India, TVS Capital and Wellington Administration.
Digit claims to carry a 2.3% market share in India’s insurance coverage market total and a 4.5% share in motor insurance coverage.
Whereas the DRHP doesn’t point out how a lot cash it’s seeking to increase through the IPO, the itemizing will contain a recent challenge of shares value Rs 1,250 crore and a proposal on the market of 10.95 crore shares from present shareholders.