Private sector insurer Reliance Life Insurance today said it is planning to file draft prospectus for initial public offer (IPO) with the market regulator Sebi in the last quarter of the current fiscal subject to regulatory approval.

The company is awaiting guideline on IPO for the sector, a senior company official said, adding that it has applied to the finance ministry for a waiver in the listing norms and awaiting reply.

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The 6AA provision of the Insurance Act, specifies that Indian promoters having more than 26 per cent shareholding shall after 10 years reduce it in some appropriate manner or within such period the central government may decide.

The firm also plans to initiate the process of scouting for strategic partner, official said.

Insurance sector regulator IRDA is working out guideline on IPO with the Securities and Exchange Board of India. IRDA is expected to come out with the guidelines during the month.

Reliance Life plans to divest up to 20 per cent of the company post approval. Of the total, 10 per cent is expected to go to strategic investor through pre-IPO placement.

The company would also consider strategic sale of up to 20 per cent to raise funds as an alternate to the IPO, official said.

Reliance Life Insurance which has assets under management (AUM) over Rs 10,000 crore is the sixth largest private sector insurer in terms of AUM.

Its AUM has grown from Rs 300 crore in September 2005 to Rs 10,000 crore, registering a compounded annual growth rate of 240 per cent in the last four years.

Of the total assets of Rs 10,000 crore currently, Reliance Life has parked Rs 6,000 crore in the capital market, while the remaining Rs 4,000 crore in debt instruments.

The company collected Rs 211.69 crore during the month of August.

During the first five months of the current fiscal, the first premium income of the company declined by 15 per cent to Rs 947.41 crore against Rs 1,112.61 crore in the same period last year.

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