Axis, HDFC To Pick Up Stake In IPO-Bound Go Digit

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Axis Bank and HDFC are in talks to buy a stake in the company ahead of its initial public offering (IPO) later this year. The stake purchase is said to be in the range of 10-20% and will be worth around Rs 1,200-1,500 crore. This move comes as the insurance company plans to raise Rs 7,500-8,500 crore through its IPO, which is expected to take place in the second half of 2022.

Axis Bank and HDFC are two of the largest private sector banks in India and are known for their strong distribution networks. By picking up a stake in Go Digit, they will have access to the company’s general insurance products and will be able to offer them to their customers. This is expected to help Go Digit expand its customer base and increase its revenue.

Go Digit General Insurance was founded in 2016 by Kamesh Goyal, who is a veteran in the insurance industry and has held senior positions in companies like Bajaj Allianz and Royal Sundaram. The company has seen significant growth since its inception and has a market share of around 1.5% in the Indian general insurance market.

Axis Capital and HDFC Standard Life Insurance have reportedly agreed to invest about INR 800 crores ($107m) in Go Digit General Insurance as part of the IPO-bound insurer’s pre-initial public offering (IPO) funding round.

Go Digit, which is backed by billionaire Prem Watsa’s Fairfax, is seeking a valuation of $1.2bn. The funding will help the company meet the regulatory requirements of Solvency II, which is a set of risk-based capital requirements for insurers operating in the European Union.

Go Digit provides general insurance products such as motor, health, travel and home insurance, and claims to have served over 5.5 million customers across over 1,000 cities in India since its launch in 2017. The company is reportedly planning to raise about $500m through its IPO, which is expected to take place in the second half of 2021.

Go Digit General Insurance Ltd is a Mumbai-based company that offers a wide range of general insurance products such as car, bike, health, travel, and home insurance. The company is backed by marquee investors like Canadian pension fund Ontario Teachers’ Pension Plan Board, Fairfax Financial Holdings Ltd, and domestic private equity firm TVS Capital.

Axis Bank and HDFC are in talks to buy a stake in the company ahead of its initial public offering (IPO) later this year. The stake purchase is said to be in the range of 10-20% and will be worth around Rs 1,200-1,500 crore. This move comes as the insurance company plans to raise Rs 7,500-8,500 crore through its IPO, which is expected to take place in the second half of 2022.

Axis Bank and HDFC are two of the largest private sector banks in India and are known for their strong distribution networks. By picking up a stake in Go Digit, they will have access to the company’s general insurance products and will be able to offer them to their customers. This is expected to help Go Digit expand its customer base and increase its revenue.

Go Digit General Insurance was founded in 2016 by Kamesh Goyal, who is a veteran in the insurance industry and has held senior positions in companies like Bajaj Allianz and Royal Sundaram. The company has seen significant growth since its inception and has a market share of around 1.5% in the Indian general insurance market.