HDFC Bank On Thursday announced that it will invest Rs 49.9 - 69.9 crore in Go Digit Life Insurance in two tranches to acquire up to a 9.94 per cent equity stake in the company.
HDFC Bank in an exchange filing said that it has entered into "an indicative and non-binding term sheet with Go Digit Life Insurance."
The insurance company proposes to carry out life insurance business in India, subject to the grant of a certificate of registration by the Insurance Regulatory and Development Authority of India (IRDAI), HDFC Bank added.
Go Digit offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other insurance products, to meet the needs of the customers.
Shares of HDFC Bank on Thursday closed 0.51 percent lower at Rs 1,463.85 apiece on BSE against its previous close.
Go Digit General Insurance has also filed draft papers with Sebi to float an initial public offering (IPO).
The Draft Red Herring Prospectus (DRHP) states that the IPO will comprise fresh issuance of equity shares worth Rs 1,250 crore and an offer-for-sale (OFS) of 10,94,45,561 equity shares by a promoter and existing shareholders.