Reliance General Insurance Files Draft Prospectus With SEBI For An IPO

Reliance General Insurance Ltd. filed its draft prospectus with the Securities and Exchange Board of India for an initial public offer through which it plans to sell up to 6.71 crore shares.

The offer will include a fresh issue of up to 1.7 crore shares and an offer for sale of up to 5 crore shares by Reliance Capital Ltd., the company said in a statement.

ICICI Lombard General Insurance Company was the first general insurer to list so far this year. India's largest general insurer New India Assurance Company has also filed for a Rs 10,000 crore IPO while General Insurance Corporation of India is looking to raise Rs 11,370 crore through its offer which opens on October 11.

Reliance General Insurance will use the proceeds of the issue to augment the solvency margin and consequently increase the solvency ratio and to meet future capital requirements which may arise out of growth, the private insurer said.

Motilal Oswal Investment Advisors Ltd., Credit Suisse Securities (India), Edelweiss Financial Services, UBS Securities India, Haitong Securities India and IDBI Capital Markets & Securities will manage the issue.

Shares of parent company, Reliance Capital, rose as much as 3.9 percent to Rs 574 after the announcement.

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