GDGo Digit General Insurance544179Stake acquisition deal

Promoter's parent declared 'Strategic Buyer' for 60.72% of IDBI Bank; plans to contribute insurer, IIFL Capital

Go Digit General Insurance has informed the exchanges of a news release by Fairfax Financial Holdings, parent of its promoter FAL Corporation.

By ScoutQuest · Thu 15 Oct 2026, 9:51 PM IST · 3 min read

Strategic buyer stake in IDBI Bank

60.72% equity stake at INR 81 per share

Transaction value

approximately INR 528.78 billion (approximately US$5.6 billion)

Premium to book value

approximately 23% to book value as of June 30, 2026

Go Digit General Insurance has informed the exchanges about a news release issued by Fairfax Financial Holdings Limited, the parent of the company's promoter FAL Corporation, on 14 October 2026.

What was announced

• The Government of India has declared a wholly-owned subsidiary of FFHL (the 'Fairfax Purchaser') the 'Strategic Buyer' for a 60.72% equity stake in IDBI Bank Limited.
• Under the terms of its bid, the Fairfax Purchaser (or an affiliate of it) would acquire that equity stake at a price of INR 81 per share, for a total of approximately INR 528.78 billion (approximately US$5.6 billion).
• This represents a premium to the book value of IDBI Bank as of June 30, 2026 of approximately 23%.
• Fairfax currently expects the purchase price to be satisfied through a combination of cash on hand or otherwise available through existing credit sources, and potential asset sales.

Where Digit fits

• Fairfax proposes to contribute all of FFHL's interests in Go Digit Life Insurance Limited and Go Digit General Insurance Limited (together, 'Digit') to IDBI Bank.
• It also proposes to contribute all of FIH's interest in IIFL Capital Services Limited ('IIFL Capital') to IDBI Bank.
• These are referred to as the 'Contribution Transactions'; the shares would be contributed at their respective market prices, in accordance with all applicable law and regulation.
• Fairfax does not expect any change in the governance, management or operating structure of either Digit or IIFL Capital as a result of the proposed Contribution Transactions. The current leadership team at Digit, led by Kamesh Goyal, would remain in place.
• Following consummation, Fairfax expects the operations of the newly combined company to continue to be led by IDBI Bank's current Managing Director and CEO, Rakesh Sharma. C. V. R. Rajendran and N. S. Kannan are planned to be included in the leadership group for IDBI Bank, subject to approval of the Reserve Bank of India.

Approvals and status

• The approval of the Reserve Bank of India will be required in connection with the proposed contribution of Digit, and each Contribution Transaction will be subject to the review and approval of the Securities and Exchange Board of India. The Digit Contribution will also be subject to the approval of the Insurance Regulatory and Development Authority of India.
• No binding definitive agreements in connection with the Purchase Transaction or the Contribution Transactions have been entered into, and there can be no assurances that any such transactions will be consummated on the currently proposed terms, or at all.
• It is also possible that the Purchase Transaction could occur without consummation of either or both of the Contribution Transactions.
• If definitive transaction agreements are entered into, each transaction would be subject to the satisfaction of numerous governmental, regulatory, equityholder, debtholder and other approvals and consents.

What this means for the reader

• This is a promoter-level development. Any change in Go Digit's ownership would come only through the proposed contribution of Digit to IDBI Bank, which is described as proposed and subject to approvals.
• The release states that the transactions are conditional and that no binding definitive agreements have been entered into.

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