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 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.

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