Reliance General Insurance files draft papers with SEBI for IPO

Anil Ambani Group-owned Reliance General Insurance has filed draft papers with markets regulator SEBI for an initial public offer (IPO).

The IPO comprises fresh issue of little over 1.67 crore shares by the company and an offer for sale by Reliance Capital of 5.03 crore shares. As per the draft papers, Reliance General Insurance, plans to utilise the proceeds from the fresh issue towards augmenting the solvency margin and consequently increase the solvency ratio.

The money will also be used to meet future capital requirements, which are expected to arise out of growth.

Reliance General Insurance offers insurance products in the motor, weather and crop, health, fire and engineering, and marine insurance sectors, as well as in other miscellaneous insurance business lines.

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 has received in-principle approval from insurance sector regulator- Insurance Regulatory and Development Authority (IRDAI) last month for the IPO. The company is expected to get listed in the current financial year.