Canadian investor Fairfax Financial Holdings has proposed transferring all its interests in insurtech company 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. Under its bid, Fairfax would acquire the controlling stake for approximately ₹52,878 Cr ($5.6 Bn), at ₹81 per share.
Fairfax said the proposed transfers would take place at the respective market prices of the holdings, subject to applicable laws and regulatory approvals. Both transfers would require approvals from RBI, SEBI, and other relevant authorities. The Go Digit transaction would also require clearance from the Insurance Regulatory and Development Authority of India (IRDAI).
“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,” Go Digit CEO Kamesh Goyal said.
Fairfax chairman and CEO Prem Watsa said the proposed arrangement would allow IDBI Bank to distribute insurance products through Digit Insurance, while offering investment banking and wealth management services through IIFL Capital.
Fairfax’s Go Digit Investment History
Fairfax has been a key investor in Go Digit since the insurtech’s early years. It holds its interest through wholly owned subsidiary FAL Corporation and has invested alongside Goyal and his entity, Oben Ventures LLP.
Their holdings were routed through Go Digit Infoworks Services Pvt Ltd (GDISPL), the insurer’s holding company. In its IPO papers, Go Digit disclosed that FAL Corporation held 45.25% of GDISPL’s equity capital, while Goyal and Oben Ventures held 14.96% and 39.79%, respectively.
Go Digit listed in May 2024, raising ₹1,125 Cr through a fresh issue of shares. GDISPL held a controlling 72.98% stake in the insurer as of June 30, 2026.
Fairfax’s ownership is indirect, with FAL Corporation, Fairfax Asia Ltd, Fairfax Financial Holdings Ltd, FFHL Group, Falcon Insurance Public Company Ltd, and Fairfax (Barbados) International Corp forming part of Go Digit’s promoter group.
In December 2025, Go Digit’s board approved a scheme to amalgamate GDISPL into the listed insurer. Under the proposal, GDISPL would be dissolved without being wound up, making Fairfax, Goyal, and Oben Ventures direct shareholders in Go Digit.
In a June rating note, CRISIL estimated that Fairfax’s holding would rise to 57.28% on a fully diluted basis following the amalgamation, factoring in its equity and compulsorily convertible preference shares in GDISPL. Goyal and Oben Ventures’ combined holding would fall to 14.92%.
The Competition Commission of India approved the proposed amalgamation on July 28. This is a separate transaction from Fairfax’s proposed transfer of its Digit interests to IDBI Bank.
Meanwhile, 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. Its gross premium written fell 8.4% to ₹2,730.9 Cr from ₹2,981.8 Cr.
Shares of Go Digit were trading 0.14% lower at ₹283.50 on the BSE.
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