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Less than two weeks after Go Digit Insurance filed its DRHP to float its IPO, the insurance company has found an investor in India's largest private sector lender HDFC Bank.
According to the bank's statement, the bank has entered into a non-binding agreement with the Insurance company to purchase a 9.94% stake for a consideration ranging between 50-70 crores in two tranches.
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"HDFC Bank Limited on August 24, 2022, has entered into an indicative and non-binding term sheet with Go Digit-Life Insurance Limited which summarizes the principal terms of a proposed investment, by HDFC Bank in the company, of an amount between Rs 49.9 crore to Rs 69.9 crore, in two tranches, by subscribing to equity shares of the company, for an equity stake of up to 9.944% 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 fulfillment of other terms and conditions,” the bank informed the stock exchanges.
The new-age insurance company, which counts Sequoia Capital, IIFL Finance, and Wellington Management as investors, will also be able to add HDFC Bank's name to its coterie of investors.
The insurance company offers motor, health, travel, marine, property, and other insurance services. It was reported in some papers that the company has also applied for a life insurance license to the IRDAI, but receipt of the same is pending.
The DRHP filed by Go Digit Insurance is currently pending approval from SEBI. The share of HDFC Bank opened at Rs 1,437.00 per share on Monday.
Article by Aman Agarwal.
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