HDFC Bank invests Rs 69.90 crore in Go Digit Life Insurance; shares rise

Shares of the company gained more than 15% in last six months.

Agreements to Invest in Go Digit Life 

HDFC Bank has executed definitive agreements on April 21, 2023, to invest an amount of up to Rs 69.90 crore in Go Digit Life Insurance in two tranches, subject to the terms and conditions set out in the definitive agreements.

In accordance with the definitive agreements, the consideration to be paid for the acquisition of 9.94% in the equity share capital of Go Digit Life (by way of a share subscription) in the first tranche amounts to approximately Rs 10.93 crore (Initial Subscription). The Bank, at its discretion, may elect to invest the remaining amount of up to Rs 58.97 crore in the second tranche post-completion of the Initial Subscription, in accordance with the definitive agreements. Go Digit Life proposes to carry out life insurance business in India subject to grant of certificate of registration by the Insurance Regulatory and Development Authority of India (IRDAI).

Share price movement of HDFC Bank Limited 

Today, the stock opened at Rs 1676.65, with a high and low of Rs 1689.00 and Rs 1672.70. Currently, the stock is trading at Rs 1676.50, down by 0.71%. 

The stock has a 52-week high of Rs 1715.85 and a 52-week low of Rs 1271.75. The company has ROE and ROCE of 18.6 and 6.85 and a market capitalisation of Rs 9,42,111.67 crore.      

Company profile       

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. HDFC Bank is a publicly held banking company, the bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India.