Axis Bank to acquire nearly 10 % of Go Digit Life Insurance; here's how much it will pay
Axis Bank has signed a non-binding term sheet with Go Digit Life Insurance for a proposed investment of up to Rs 70 crore in two tranches.
Axis Bank, the country's third largest private sector lender, will invest around Rs 50-70 crore to acquire less than a 10 per cent stake in Fairfax-backed Go Digit Life Insurance.
Max Life Insurance Company is already promoted by the lender.
Axis Bank has signed a non-binding term sheet with Go Digit Life Insurance for a proposed investment of up to Rs 70 crore in two tranches by acquiring equity in the insurer.
In a regulatory filing, the lender stated that it intends to acquire up to 9.94 percent of Go Digit Life Insurance.
According to Axis Bank, the stake purchase is subject to the execution of definitive agreements with mutually agreed-upon terms and conditions, as well as the fulfilment of other conditions.
"The company proposes to carry out life insurance business in India, subject to the grant of certificate of registration by Insurance Regulatory and Development Authority of India," it stated.
Max Life Insurance is owned by Axis Bank and its two subsidiaries, Axis Capital and Axis Securities. The lender intends to increase its stake to around 20 per cent in the near future.
Axis Bank shares closed at Rs 737.30 per share on the BSE, down 0.69 percent.
(With inputs from PTI)