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Reliance General Insurance files draft papers for IPO

Press Trust of India  |  New Delhi 

General Insurance, part of Anil Ambani-led Group, today filed draft papers with markets regulator for an initial public offer.

The IPO comprises fresh issue of little over 1.67 crore by the company and an offer for sale by Capital of 5.03 crore shares, according to the draft papers.

Another group firm -- Reliance Nippon Life Asset Management -- has already filed preliminary papers with to float an IPO and is awaiting the regulator's nod.

Reliance General 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 requirements, which are expected to arise out of growth, as per the draft papers.

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 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 sector regulator IRDAI last month for the IPO, expects to get listed in the current financial year.

Currently, ICICI Prudential Life and SBI Life Insurance are the only listed insurers in the country.

The Rs 11,370 crore IPO of state-owned General Insurance Corporation of India's (GIC) will open on October 11.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, October 09 2017. 15:48 IST