Reliance General Insurance receives Sebi's nod for IPO

Reliance Group Chairman Anil Ambani (Photo: PTI)
Reliance General Insurance Company, part of Anil Ambani-led Reliance Group, today said it has received markets regulator Sebi's go-ahead to float an initial public offering.

The IPO comprises a fresh issue of little over 1.67 crore shares by Reliance General Insurance besides an offer for sale of 5.03 crore shares by Reliance Capital.

The company plans to utilise the proceeds from the fresh issue towards augmenting the solvency margin and consequently increasing the solvency ratio.

Besides, the money will be used to meet future capital requirements, which are expected to arise out of growth.

The Securities and Exchange Board of India (Sebi) has issued its final "observations" to the draft papers filed by Reliance General Insurance in October, the company said in a statement.

The regulator's "observations" are very important for any company to launch any public offers.

At the end of March this year, Reliance General Insurance's book value stood at Rs 1,250 crore.

The company's valuation is expected to be over Rs 6,000 crore, an average multiple of around five times, merchant banking sources said.

Motilal Oswal Investment Advisors, Credit Suisse Securities (India) Pvt Ltd, Edelweiss Financial Services, UBS Securities, Haitong Securities and IDBI Capital Markets & Securities will manage the IPO.

Reliance General Insurance, which received in-principle approval from insurance sector regulator IRDAI in September for the IPO, expects to get listed in the current financial year.

Earlier this month, another group firm - Reliance Nippon Life Asset Management - got listed on the bourses.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel