scorecardresearchAxis Bank to pick nearly 10% stake in Go Digit Life Insurance

Axis Bank to pick nearly 10% stake in Go Digit Life Insurance

Updated: 28 Sep 2022, 08:08 AM IST
TL;DR.
Axis Bank has entered into an indicative and non-binding term sheet with Go Digit Life Insurance for a proposed investment of up to 70 crore in two tranches by picking up equity in the insurer.
Mumbai, Sept 21 (ANI): Axis Bank Chief Executive Officer, Amitabh Chaudhry addresses at Global Fintech Fest, in Mumbai on Wednesday. (ANI Photo)

Mumbai, Sept 21 (ANI): Axis Bank Chief Executive Officer, Amitabh Chaudhry addresses at Global Fintech Fest, in Mumbai on Wednesday. (ANI Photo)

(PTI) The country's third largest private sector lender Axis Bank will invest around 50-70 crore to acquire a little less than a 10 per cent stake in Fairfax-backed Go Digit Life Insurance.

The lender is already a promoter of Max Life Insurance Company.

Axis Bank has entered into an indicative and non-binding term sheet with Go Digit Life Insurance for a proposed investment of up to 70 crore in two tranches by picking up equity in the insurer.

The lender in a regulatory filing said it is planning to acquire an equity stake of up to 9.94 per cent in Go Digit Life Insurance.

The stake buy is subject to execution of definitive agreements whose terms and conditions are to be mutually agreed upon alongside fulfilment of other conditions, Axis Bank said.

"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 said.

Axis Bank along with its two subsidiaries Axis Capital and Axis Securities own a 12.99 per cent stake in Max Life Insurance. The lender plans to raise the stake to about 20 per cent in the near future. 

Shares of Axis Bank closed at Rs 737.30 apiece on BSE, down by 0.69 per cent.

First Published: 28 Sep 2022, 08:08 AM IST