Axis Bank and Go Digit Life Insurance are negotiating for a stake in the insurtech start-up.
According to reports cited by news agency Reuters, the banking giant is aiming to purchase a 10 per cent stake in the future life insurance division of Go Digit General Insurance for about $9 million. This would value the division at $90 million.
The action is a part of Axis Bank’s strategy to increase its market share in the insurance industry.
The acquisition would help Axis better understand the online insurance market, according to the source, and will allow it to “increase outreach to insurance clients with its own banking capabilities.”
The announcement comes about a week after HDFC Bank, another major banking institution, revealed its intentions to invest up to INR 69.9 Cr for an equity stake of up to 9.94 per cent in Go Digit Life Insurance.
Following Go Digit General Insurance’s submission of its draught red herring prospectus (DRHP) with the Securities and Exchanges Board of India (SEBI) for its initial public offering, Axis Bank made its statement (IPO).
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Numerous media publications estimate the IPO’s total amount to be about INR 5,000 Cr. The business intends to sell 109.45 million shares through an offer for sale (OFS) and issue new equity totaling INR 1,250 Cr.
