As per the latest weekly update of processing status of draft offer documents filed with it, the Securities and Exchange Board of India (Sebi) said that clarifications were awaited on the company's proposed IPO as on November 24.
The next update would be available on December 4.
Sebi said that it might issue observations on Reliance General Insurance's IPO document within 30 days from the date of receipt of satisfactory reply from the lead merchant bankers to the clarification or additional information sought.
The regulator had last received any communication from the company on November 23.
Reliance General Insurance had filed draft papers with Sebi for an initial public offer (IPO) in October.
The proposed IPO comprises fresh issue of little over 16.7 million shares by the company and an offer for sale by Reliance Capital of 50.3 million shares, according to the draft papers.
The company plans to utilise the proceeds from the fresh issue towards augmenting the solvency margin and consequently increase the solvency ratio. Besides, the money will be used to meet future capital requirements, which are expected to arise out of growth.
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), Edelweiss Financial Services and UBS Securities are the global co-ordinators and book running lead managers to the issue. Haitong Securities and IDBI Capital Markets & Securities are the book running lead managers.
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.
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.