Fairfax Proposes Moving Go Digit Stake to IDBI Bank
Canadian investor Fairfax Financial Holdings has proposed transferring all its interests in Go Digit General Insurance and its affiliate Go Digit Life Insurance to IDBI Bank. Separately, Fairfax India Holdings has proposed transferring its entire stake in IIFL Capital Services to the lender.
The proposals follow the Indian government's selection of a wholly owned Fairfax Financial subsidiary as the "strategic buyer" for a 60.72% stake in IDBI Bank. The transfers would take place at the respective market prices of the holdings. Both need approvals from RBI, SEBI and other authorities, and the Go Digit transfer also needs clearance from IRDAI.
Fairfax has been an investor in Go Digit since the insurtech's early years and holds its interest through a wholly owned subsidiary, FAL Corporation. Go Digit listed in May 2024.
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The proposal would bring banking, insurance and capital markets services under one group, with IDBI Bank able to distribute insurance products through Digit and offer investment banking and wealth management through IIFL Capital. No changes are expected to Digit's leadership or operating structure.
The deal is still a proposal, and it is tied to the IDBI Bank acquisition and to several regulatory approvals. Go Digit reported a 37.5% decline in net profit to ₹86.4 Cr in Q1 FY27 from ₹138.3 Cr in the year-ago quarter, and its gross premium written fell 8.4% to ₹2,730.9 Cr.
Go Digit CEO Kamesh Goyal said: "We are very excited about the prospect of combining Digit with IDBI Bank as it would significantly strengthen Digit's distribution footprint, allowing us to continue our growth and service offerings for the benefit of all Indians."
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