Reliance General Insurance Company Limited (RGIC) filed its Draft Red Herring Prospectus (DRHP) with the market regulator SEBI seeking permission for its Initial Public Offering (IPO). RGIC is one of the leading private-sector general insurance company’s in India.
The IPO comprises of an offering of up to 67,079,979 equity shares of face value of Rs. 10 each (“Equity Shares”) of Reliance General Insurance Company Limited. The offer comprises of a fresh issue of up to 16,769,995 equity shares by Reliance General Insurance Company Limited and an offer for sale by Reliance Capital Limited of up to 50,309,984 equity shares.
The Net Proceeds from the fresh issue will be utilised for (i) augmenting the solvency margin and consequently increase the solvency ratio and (ii) to meet future capital requirements which are expected to arise out of growth.
Motilal Oswal Investment Advisors Limited, Credit Suisse Securities (India) Private Limited, Edelweiss Financial Services Limited and UBS Securities India Private Limited are the Global Co-ordinators and book running lead managers to the issue. Haitong Securities India Private Limited and IDBI Capital Markets & Securities Limited is the book running lead managers and Karvy Computershare Private Limited is the Registrar.
About Reliance General Insurance Company Limited:
Reliance General Insurance Company Limited (RGIC) is one of the leading private-sector general insurance company’s in India. Based on its gross direct premium income (“GDPI”) for the quarter ended June 30, 2017, RGIC is among the five largest private sector general insurance companies in India, according to the ICRA Report. RGIC offers a comprehensive and well-diversified range of insurance products in the motor, weather and crop, health, fire and engineering, and marine insurance sectors, as well as in other miscellaneous insurance business lines, which the company provides through multiple distribution channels. RGIC also participate in a number of insurance schemes promoted by the Government, notably in respect of weather insurance, crop insurance and mass health insurance.