Go Digit General Insurance Limited (GDGIL) has announced that its Board of Directors has approved a proposal to amalgamate its holding company, Go Digit Infoworks Services Private Limited (GDISPL), with GDGIL.
The amalgamation is subject to customary statutory, regulatory, shareholder, and third-party approvals and will be executed through a legally sanctioned scheme under applicable law, with necessary clearances from shareholders, creditors, regulators, statutory authorities, and the jurisdictional bench of the National Company Law Tribunal (NCLT).
The proposed merger reflects the promoters’ long-term commitment to GDGIL and its growth trajectory. By streamlining the ownership structure, the company aims to enhance value through a direct alignment between shareholders and the operating business, create a leaner and more efficient corporate structure, and position GDGIL for scalable growth and innovation. This step also aligns with broader regulatory objectives that encourage simpler ownership structures within India’s insurance sector.
The amalgamation will not affect GDGIL’s governance, management, or operational framework. The promoters will continue in their existing roles, with the exception of GDISPL, which will merge into GDGIL. The Board’s composition and the leadership team driving strategy and execution will remain unchanged, ensuring continuity in management and operations.
As part of the share exchange, GDISPL shareholders will receive equity shares of GDGIL according to the approved exchange ratio. Post-amalgamation, the promoters’ stake in GDGIL will see a marginal increase from 72.17 per cent to 72.20 per cent, reflecting a nominal rise of approximately 0.03 per cent due to the issuance of additional shares against net assets, including cash held by GDISPL. The new shares will be issued at a price of Rs 375.10 per share, representing a premium over the current market price.
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