Reliance General Insurance, plans to file fresh documents with the Sebi to float an initial share sale as the regulatory approval for the insurer’s IPO is going to lapse this month, merchant banking sources said.
The company failed to tap the primary markets as lack of investors’ appetite for the IPO and volatile equity market conditions has forced the insurer to postpone its plans.
Sebi’s approval for IPOs is valid for one year, and it will expire on November 29 in the case of Reliance General Insurance Company, according to data available with SEBI.
According to merchant banking sources, the company is very keen to come out with its IPO and will re file the draft red herring prospectus (DRHP) with Sebi very soon.
The IPO comprised fresh issue of a little over 1.67 crore shares by the company and an offer of sale by Reliance Capital of 5.03 crore shares. The firm was planning to utilise the proceeds from the issue to augment its solvency margin.