HDFC Bank on Thursday said it has entered into an indicative and non-binding term sheet with Go Digit Life Insurance Ltd to acquire up to 9.944 per cent of the paid up equity share capital of the company for between ₹49.9 crore and ₹69.9 crore.

This acquisition is subject to execution of definitive agreements whose terms and conditions are to be mutually agreed upon, and fulfilment of other terms and conditions, HDFC Bank said in a regulatory filing.

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The bank said the company proposes to carry out life insurance business in India, subject to grant of certificate of registration by Insurance Regulatory and Development Authority of India.

This development comes even as Canadian billionaire Prem Watsa-owned Fairfax-backed Go Digit General Insurance has filed its Draft Red Herring Prospectus (DRHP) with the SEBI for an initial public offering (IPO) involving a fresh issue of shares and an offer for sale by its promoter and certain selling shareholders.

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As per the draft papers filed with the market regulator, the new age general insurer will make a fresh issue of equity shares worth up to ₹1,250 crore combined with an offer-for-sale (OFS) up to 10.94 crore equity shares by the promoter and selling shareholders. The overall mop-up eyed through this offering could be about ₹5,000 crore, according to market sources.

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