Go Digit Infoworks Service Pvt Ltd to amalgamate with Go Digit General Insurance Ltd

Go Digit General Insurance Limited ("GDGIL"), one of India's leading new-age general insurance companies, announcesthat its Board of Directors have approved a proposal to amalgamate its holding company, Go Digit Infoworks Services Private Limited ("GDISPL"), with GDGIL, subject to customary statutory, regulatory, shareholder and third party approvals.

The proposed amalgamation will be carried out through a scheme of amalgamation under applicable law and will be subject to approvals from shareholders, creditors, regulator(s), statutory authorities, and the jurisdictional bench of the Hon'ble National Company Law Tribunal ("NCLT"), as required.

Strategic Rationale

The proposed amalgamation reflects the promoters' long-term commitment to GDGIL and its growth trajectory. By simplifying the ownership structure, GDGIL aims to:

- enhance value by creating direct alignment between shareholders and the operating business;
- support a leaner, more efficient corporate structure; and
- position the company for scalable growth and innovation.

The proposed amalgamation is also aligned with the broader regulatory objective of encouraging simpler ownership structures in the insurance sector.

Management and Governance

- There will be no change in the governance, management or operating structure of GDGIL.
- The promoters of GDGIL will continue as before, except for GDISPL, which will amalgamate into GDGIL.
- The composition of the GDGIL Board will remain unchanged, and the current leadership team will continue to drive strategy and execution.

Share Exchange and Shareholding Structure

- Pursuant to the amalgamation, shareholders of GDISPL will receive equity shares of GDGIL in accordance with the share exchange ratio as approved under the Scheme.

- Post amalgamation, the Promoter's shareholding in GDGIL will marginally increase from 72.17% to 72.20% on fully diluted basis, reflecting a nominal increase of ~0.03%, due to additional shares to be issued against available net assets, including cash available in GDISPL. The additional shares of GDGIL will be issued at a price of ₹ 375.10 per share, which is at premium to current market price.

Shares of Go Digit General Insurance Limited was last trading in BSE at Rs. 342.90 as compared to the previous close of Rs. 342.45. The total number of shares traded during the day was 9483 in over 479 trades.

The stock hit an intraday high of Rs. 345.00 and intraday low of 337.85. The net turnover during the day was Rs. 3246384.00.

Source : Equity Bulls

Keywords

GoDigitGeneralInsurance INE03JT01014 Merger HoldingCompany GoDigitInfoworksServices