New Delhi, Nov 30 ()
Reliance General Insurance
Company, part of
Anil Ambani-led Reliance Group
, today 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 (Sebi) 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.
The company's valuation is expected to be over Rs 6,000 crore, an average multiple of around five times, merchant banking sources said.
Motilal Oswal Investment Advisors, Credit Suisse Securities (India) Pvt Ltd, Edelweiss Financial Services, UBS Securities, Haitong Securities and IDBI Capital Markets & Securities will manage the IPO.
Reliance General Insurance, which received in-principle approval from insurance sector regulator IRDAI in September for the IPO, expects to get listed in the current financial year.
Earlier this month, another group firm - Reliance Nippon Life Asset Management - got listed on the bourses. SP ANU
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