Reliance General Insurance Receives Sebi's Nod For IPO

Subscribe to GoodReturns
For Quick Alerts
Subscribe Now  
For Quick Alerts
For Daily Alerts

    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 utilize the proceeds from the fresh issue towards augmenting the solvency margin and consequently increasing the solvency ratio. 6 Biggest Mistakes Stock Market Investors Makes

    Reliance General Insurance Receives Sebi's Nod For IPO

    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. 6 Best Investing Tips To Do In Your 30s

    Read more about: reliance general insurance ipo
    Story first published: Thursday, November 30, 2017, 15:09 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more