Axis Bank said that it has entered into an indicative and non-binding term sheet with Go Digit Life Insurance for an acquisition of up to 9.94% stake in the life insurer.
The bank will invest an amount between Rs 49.90 crore to Rs 69.90 crore, in two tranches, by subscribing to equity shares of the company, for an equity stake of up to 9.94% of the paid-up equity share capital of the company, subject to execution of definitive agreements whose terms and conditions are to be mutually agreed upon, and fulfilment of other terms and conditions.
Go Digit Life Insurance proposes to carry out life insurance business in India, subject to grant of certificate of registration by Insurance Regulatory and Development Authority of India.
Axis Bank is the third-largest private sector bank in India. As on 30 June 2022, the bank had a network of 4,759 domestic branches and extension counters situated in 2,702 centres compared to 4,600 domestic branches and extension counters situated in 2,628 centres as at end of 30 June 2021.
The private lender's net profit surged 91% to Rs 4,125.26 crore on 12.2% increase in total income to Rs 21,727.61 crore in Q1 FY23 over Q1 FY22.
The scrip fell 1.69% to currently trade at Rs 724.85 on the BSE.
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