Reliance General Insurance Company (RGIC) – is going publicsoon. The company filed draft papers with the Securities and Exchange Board of India for an initial public offer.
The offer comprising over 6.70 crore shares includes a fresh issue of a little over 1.67 crore shares by Reliance General Insurance and an offer for sale by Reliance Capital of 5.03 crore shares.
In August, Reliance Nippon Life Asset Management had filed preliminary papers with the market regulator for an IPO and it is awaiting the latter’s nod.
Reliance General Insurance said it planned to utilise the proceeds from the fresh issue to augment its solvency margin and consequently increase the solvency ratio. Besides, the money will be used to meet future capital requirements, according to 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.
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.