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Sebi seeks clarification on Reliance General Insurance's IPO

Proposed IPO comprises fresh issue of little over 16.7 mn shares by the company and an offer for sale by Reliance Capital of 50.3 mn shares

Press Trust of India  |  New Delhi 


has sought a clarification from General Company, part of Anil Ambani-led Group, on its proposed initial public offering, the latest update with markets regulator showed.

Without disclosing details of clarifications sought, has said 'clarifications (are) awaited fro the lead manager on the proposed public issue.

As per the latest weekly update of processing status of draft offer documents filed with it, the Securities and Exchange Board of (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.

said that it might issue observations on 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.

General had filed draft papers with 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 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, 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.

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 Markets & Securities are the book running lead managers.

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

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

First Published: Mon, November 27 2017. 21:39 IST