HDFC Bank announced that it will invest in the life insurance business of IPO-bound Go Digit General Insurance. Go Digit Life Insurance has signed a ‘indicative and non-binding’ term sheet with the country’s largest private sector bank.
The banking major will invest INR 49.9 Cr to INR 69.9 Cr in two tranches in Go Digit Life Insurance for an equity stake of up to 9.94%, subject to other terms and conditions being met. This comes less than a week after Go Digit General Insurance submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). The Virat Kohli-backed startup intends to raise INR 1,250 crore in new equity and will also solicit 109.45 million shares from existing shareholders.