Reliance General Insurance, part of the Anil Ambani-led Reliance Group, yesterday filed draft papers with the capital market regulator Securities and Exchange Board of India (SEBI) for an initial public offer. The insurer's shares are expected to get listed in the current financial year ending 31 March 2018.
The IPO comprises a fresh issue of over 16.7 million shares by the company and an offer for sale by Reliance Capital of 50.3 million shares, according to the draft papers.
Reliance General Insurance plans to utilise the proceeds from the fresh issue towards boosting the solvency margin and meeting future capital requirements, which are expected to increase because of growth, as per the draft papers.
Reliance General Insurance received in-principle approval from insurance sector regulator IRDAI last month for the IPO.
Another group company -- Reliance Nippon Life Asset Management -- has already filed preliminary papers with SEBI to float an IPO and is awaiting the regulator's nod.
Currently, ICICI Prudential Life Insurance and SBI Life Insurance are the only listed insurers in the country.