Reliance General Insurance files DRHP with Sebi for IPO

Up to 67 million shares on offer, Motilal Oswal Investment Advisors, Credit Suisse Securities, Edelweiss Financial, UBS Securities are global co-ordinators and book-running lead managers

Anil Ambani-controlled Reliance Capital’s non-life insurance arm, Reliance General Insurance, (RGIC) filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India seeking permission for its Initial Public Offering (IPO).

The IPO consists of an offering of up to 67,079,979 equity shares of face value of Rs 10 each. This includes a fresh issue of up to 16,769,995 shares by RIGC and an offer for sale by Reliance Capital of up to 50,309,984 equity shares.

Net proceeds from the fresh issue will be used for augmenting the solvency margin and to meet future capital requirements.

Motilal Oswal Investment Advisors Ltd, Credit Suisse Securities (India) Pvt Ltd, Edelweiss Financial Services Ltd and UBS Securities India Pvt Ltd are the global co-ordinators and book-running lead managers to the issue. 

A press release issued by RGIC states that Haitong Securities India Pvt Ltd and IDBI Capital Markets & Securities Ltd are also the book running lead managers, while Karvy Computershare Private Limited is the Registrar.

The firm reported a 22 per cent rise in net profit at Rs 44 crore and 41 per cent increase in gross premium at Rs 1,278 crore, in the first quarter ended June 30. 

Reliance Capital received in-principle approval in early September from the Insurance Regulatory and Development Authority of India (Irdai) to list. The insurance company plans to get listed  by end of FY18.