Reliance General receives SEBI nod for IPO

Reliance General Insurance of Anil Ambani-led Reliance Group is set to roll out  its  initial public offering as the company has received the final observation letter for its draft red herring prospectus (DRHP) by the market regulator Securities and Exchange Board of India.

The initial public offer (IPO) size is estimated to be 25  per cent  of the post issue paid-up capital of Reliance General, with a fresh issue of up to 1,67,69,995 equity shares by the company and an offer for sale by Reliance Capital of up to 5,03,09,984 equity shares. According to the reports, the face value of the shares will be Rs. 10 per equity share.
 
Reliance General Insurance, a wholly-owned subsidiary of Reliance Capital Limited, is expected to use the proceeds from the IPO for increasing solvency margin and consecutively increasing the solvency ratio for meeting future capital requirements that may arise from growth. 
 
The company has appointed Motilal Oswal Investment Advisors, Credit Suisse Securities (India), Edelweiss Financial Services and UBS Securities India as the global coordinators and book running lead managers for the IPO issue. While, Haitong Securities India Private and IDBI Capital Markets & Securities Limited will be the book running lead managers and Karvy Computershare will be the registrar.