This is an intimation from Go Digit General Insurance Limited regarding a news release issued by its promoter's parent company, Fairfax Financial Holdings Limited, on 14 October 2026.

The press release announces that a wholly-owned subsidiary of Fairfax Financial Holdings Limited ("FFHL") has been declared the "Strategic Buyer" by the Government of India for a 60.72% equity stake in IDBI Bank Limited as part of the government's strategic disinvestment process.

Transaction Details

  • Purchase Price: INR 81 per share
  • Total Transaction Value: Approximately INR 528.78 billion (approximately US$5.6 billion)
  • Premium to Book Value: Approximately 23% premium to IDBI Bank's book value as of June 30, 2026, measured under Indian Accounting Standards

Strategic Contributions

Following the acquisition, Fairfax proposes to contribute:

1. Digit Contribution: All of FFHL's interests in Go Digit Life Insurance Limited and Go Digit General Insurance Limited (collectively "Digit") to IDBI Bank

2. IIFL Capital Contribution: All of Fairfax India Holdings Corporation's interest in IIFL Capital Services Limited ("IIFL Capital") to IDBI Bank

The objective is to create a leading unified Indian financial services company that can offer banking, property and casualty insurance, investment banking, and wealth management services.

Leadership Plans

Following the transactions, Fairfax expects:

  • Rakesh Sharma (current Managing Director and Chief Executive Officer of IDBI Bank) to continue leading operations
  • C. VR. Rajendran (former Chief Executive Officer of CSB Bank) to be included in the leadership group
  • N. S. Kannan (former Managing Director and Chief Executive Officer of ICICI Prudential Life Company and former Chief Financial Officer of ICICI Bank) to act as Chairman
  • No changes to the governance, management or operating structure of either Digit or IIFL Capital
  • Digit's current leadership team led by Kamesh Goyal to remain in place
  • IIFL Capital's management team led by R. Venkataraman, Vasudev Jagannath and Nemkumar H to continue execution

Funding and Approvals

  • Funding: Purchase price to be satisfied through combination of cash on hand or otherwise available to Fairfax through existing credit sources and potential asset sales
  • Valuation: Digit and IIFL Capital would be contributed at their respective market prices
  • Approvals Required: Reserve Bank of India approval for both Contribution Transactions, Securities and Exchange Board of India review and approval for each Contribution Transaction, and Insurance Regulatory and Development Authority of India approval for the Digit Contribution

Current Status

  • The declaration as "Strategic Buyer" does not represent the final stage of the government's sale process
  • No binding definitive agreements have been entered into by any parties
  • The Purchase Transaction could occur without consummation of either or both Contribution Transactions
  • Transactions are subject to numerous governmental, regulatory, equityholder, debtholder, and other approvals and consents

Management Commentary

Prem Watsa, Chairman and Chief Executive Officer of FFHL, stated: "We are very excited to be selected by the Government of India to be the purchaser of the Government's interest in IDBI Bank. This transaction represents a once-in-a-lifetime opportunity to purchase a majority interest in a bank in one of the world's fastest growing economies."

Kamesh Goyal, Founder and Chairman of Digit, commented: "We are very excited about the prospect of combining Digit with IDBI Bank as it would significantly strengthen Digit's distribution footprint."

Nirmal Jain, Founder of IIFL Group, stated: "This partnership would create a unique opportunity for IIFL Capital to accelerate growth across investment banking, institutional equities, wealth and asset management."

Conference Call

Fairfax will host a conference call on October 15, 2026, at 8:30 a.m. Eastern time to discuss the proposed transactions.