Fairfax Proposes To Transfer Go Digit Stake To IDBI Bank

Canadian investor Fairfax Financial Holdings has suggested merging its insurance technology company Go Digit General Insurance and its insurance subsidiary Go Digit Life Insurance into IDBI Bank. Concurrently, Fairfax India Holdings has suggested merging its stake in IIFL Capital Services with IDBI Bank. These proposals come after India's government designated a wholly owned Fairfax subsidiary as the "strategic buyer" for a 60.72% stake in IDBI Bank.

Under the proposed deal, Fairfax would acquire the controlling stake for about ₹52,878 Cr ($5.6 Bn), or ₹81 per share. Both mergers would depend on market prices of the holdings, subject to legal requirements and regulatory approvals, including from RBI, SEBI, IRDAI, and other authorities. The Go Digit merger would also need IRDAI clearance.

Fairfax CEO Prem Watsa said the arrangement would strengthen Go Digit's distribution capabilities, enabling it to continue growth and services for Indian customers. Go Digit CEO Kamesh Goyal expressed excitement about combining with IDBI Bank, highlighting the integration's benefits for Digit's distribution network and service offerings.