Axis Bank and HDFC Bank on Friday signed a definitive agreement to invest up to Rs 69.90 crore in Go Digit Life in two tranches, the banks announced through an exchange filing. The banks will both acquire 9.94 per cent shares in Go Digit Life for Rs 10 each.
Axis Bank and HDFC Bank will pay Rs 10.93 crore in the first tranche and it may choose to invest Rs 58.97 crore in the second tranche. The company is to complete the acquisition in three to six months from the execution date.
Go Digit Life proposes to carry out life insurance business in India subject to grant of certificate of registration by the Insurance Regulatory and Development Authority of India (IRDAI).
Go Digit Life
Go Digit Life was incorporated as “Go Digit Life Sciences Private Limited” on December 16, 2021 as a private limited company under the Companies Act, 2013. It was subsequently converted to a public limited company on May 10, 2022. The name of Go Digit Life was changed from “Go Digit Life Sciences Limited” to its present name: “Go Digit Life Insurance Limited” on June 02, 2022.
Based on the unaudited financial statements of Go Digit Life for the year ended March 31, 2023, the turnover (operating income) was NIL and losses were Rs. 5.36 crore. Total Assets were Rs 26.42 crores.
HDFC Bank and Axis Bank shares
The shares of HDFC Bank on Friday closed at Rs 1,672, up by 0.0060 per cent and the shares of Axis Bank closed at Rs 860.70, down by 0.93 per cent.
