Axis Financial institution to amass 9.94% stake in IPO-bound Go Digit Life Insurance coverage

India’s third largest non-public sector lender Axis Financial institution on Tuesday knowledgeable that it has entered into an indicative and non-binding time period sheet with Go Digit Life Insurance coverage for a proposed funding of Rs 49.90 to Rs 69.90 crore for 9.94 per cent stake. Axis Financial institution’s announcement comes only a month after HDFC Financial institution mentioned it should choose up 9.94 per cent stake within the IPO-bound Go Digit.

Axis Financial institution, too, has set its eyes on tapping enormous potential within the insurance coverage sector. In a regulator submitting, Axis Financial institution as we speak mentioned: “(It) has entered into an indicative and non-binding time period sheet with Go Digit for a proposed funding…of an quantity between Rs 49.90 crore to Rs 69.90 crore, in two tranches, by subscribing to fairness shares of the Firm, for an fairness stake of as much as 9.94% of the paid-up fairness share capital of the Firm, topic to execution of definitive agreements whose phrases and circumstances are to be mutually agreed upon, and success of different phrases and circumstances.” 

The financial institution additional mentioned that Go Digit proposes to hold out life insurance coverage enterprise within the nation, topic to the grant of a certificates of registration by insurance coverage regulator IRDA.

On August 17, Go Digit filed preliminary IPO papers with the capital markets regulator SEBI (Securities and Trade Board of India). Nonetheless, earlier this month, it was reported that the regulator had saved the IPO in “abeyance”. As per the draft papers, Go Digit IPO includes recent issuance of fairness shares price Rs 1,250 crore and a proposal for the sale of 10.94 crore fairness shares by a promoter and current shareholders.

Based in 2017, Go Digit is backed by Fairfax Capital and Sequoia Capital India. Virat Kohli and Anushka Sharma have additionally invested within the firm, which presently affords basic insurance coverage merchandise – automobile, bike, medical insurance – and now getting into the life insurance coverage area.