Axis Bank to buy nearly 10% stake in Go Digit Life Insurance

0
78


Axis Bank, the nation’s third greatest personal lender, has signed a non-binding time period sheet to make investments an quantity between 49.9-69.9 crore in Go Digit Life Insurance for 9.94% stake in two tranches, because the personal lender seeks to faucet a fast-growing insurance market.

This underscores personal lenders’ rising curiosity in India’s profitable and largely untapped insurance sector. Private lender HDFC Bank has additionally introduced plans to buy a 9.94% stake in Go Digit Life final month.

“…Axis Bank Limited (“Bank”) has entered into an indicative and non-binding time period sheet with Go Digit Life Insurance Limited (“Company”) for a proposed investment, by Axis Bank in the Company, of an amount between Rs. 49.90 crores to Rs. 69.90 crores, in two tranches, by subscribing to equity shares of the company, for an equity stake of up to 9.94% of the paid-up equity share capital of the company, subject to execution of definitive agreements whose terms and conditions are to be mutually agreed upon, and fulfilment of other terms and conditions,” the financial institution mentioned in a regulatory submitting.

The firm proposes to perform life insurance business in India, topic to grant of certificates of registration by Insurance Regulatory and Development Authority of India.

Digit, which already has a presence in the final insurance business, is foraying into the life insurance section with its Go Digit Life enterprise however has not but obtained a licence for the unit.

Go Digit’s IPO put in ‘abeyance’ by Sebi

Go Digit General Insurance, Digit’s common insurance business backed by Canadian billionaire Prem Watsa’s Fairfax Group, had its deliberate preliminary public providing placed on maintain this month.

See also  Amazon’s home insurance comparison tool takes on a crowded UK space

Without disclosing the rationale, Securities and Exchange Board of India (Sebi) mentioned in a public disclosure on its web site on Monday that the “issuance of observations (has been) saved in abeyance” with regard to the IPO of Go Digit. The data was up to date on 16 September.

GoDigit General Insurance had filed draft papers for the IPO with the regulator on 17 August.

“Issuance of observations” by Sebi implies its go-ahead for an IPO. The regulator usually gives its observations on IPO papers in 30 days.

Catch all of the Industry News, Banking News and Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.

More
Less

Subscribe to Mint Newsletters

* Enter a legitimate electronic mail

* Thank you for subscribing to our e-newsletter.



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here