Reliance General Insurance Company, said it has received markets regulator Sebi’s go ahead to float an initial public offering.
The IPO comprises fresh issue of little over 1.67 crore shares by Reliance General Insurance besides an offer for sale of 5.03 crore shares by Reliance Capital.
The company plans to utilise the proceeds from the fresh issue towards augmenting the solvency margin and consequently increasing the solvency ratio.
Besides, the money will be used to meet future capital requirements, which are expected to arise out of growth.
The Securities and Exchange Board of India has issued its final “observations” to the draft papers filed by Reliance General Insurance in October, the company said in a statement.
The regulator’s “observations” are very important for any company to launch any public offers.
At the end of March this year, Reliance General Insurance’s book value stood at Rs 1,250 crore.