In separate exchange filings on Saturday, both banks said that they had signed definitive agreements with GoDigit Life Insurance to invest around Rs 70 crore each over two tranches.
First tranche of already in
The first tranche of Rs 10.9 crore has been pumped in already, the filings said.
In the process, the two lenders will acquire around 9.9% of the life insurance company, which is still in the process of getting a licence to start its business.
The second tranche of the investment will be concluded after the first one, subject to meeting the requirements agreed upon between the two parties, the filings said.
Discover the stories of your interest
Industry insiders believe that once GoDigit gets its in-principle approval from the regulator, the remainder of the funding will be pumped in. The company reported zero revenue and a loss of Rs 5.3 crore as on March 31, 2023. Its net assets stood at Rs 26.4 crore.
IPO and licence hopes
The parent entity GoDigit is in the process of getting listed on the public markets. It has re-filed papers for a $440-million IPO with market regulator Securities and Exchange Board of India (Sebi) after they were sent back last September because of certain compliance issues.
If GoDigit Life manages to get a life insurance licence, it will join CreditAccess Life and Acko, which got their licences earlier this year.
For all the latest Technology News Click Here
