Go Digit General Insurance Limited (GDGIL) announced that its Board of Directors has approved a scheme of amalgamation with its holding company, Go Digit Infoworks Services Private Limited (GDISPL). This strategic move, subject to approvals from shareholders, creditors, the National Company Law Tribunal (NCLT), and various regulatory bodies including SEBI and IRDAI, aims to simplify the corporate structure and reduce administrative overheads. The amalgamation is expected to create direct alignment between shareholders and the operating business, fostering a leaner and more efficient corporate setup. Under the proposed scheme, GDISPL will be amalgamated into GDGIL, with no cash consideration payable. Shareholders of GDISPL will receive equity shares of GDGIL based on a pre-defined share exchange ratio. Specifically, for every 1000 fully paid-up equity shares of ₹10 held in GDISPL, shareholders will receive 2,62,589 equity shares of ₹10 each in GDGIL. Similar ratios are defined for preference shareholders. The amalgamation is anticipated to result in a marginal increase in the promoter's shareholding in GDGIL from 72.17% to 72.20% on a fully diluted basis. This increase is attributed to additional shares issued against net assets and cash available in GDISPL. The additional shares will be issued at ₹375.10 per share, a premium to the current market price. The company's management stated that there will be no change in the governance, management, or operating structure of GDGIL, and the current leadership team will continue to drive strategy and execution. The transaction is considered to be at arms-length, with valuation reports from RBSA Valuation Advisors LLP and a fairness opinion from Ernst & Young Merchant Banking Services LLP supporting the share exchange ratios.