The group had recently seen the successful IPO of its life insurance company, Reliance Nippon Life Insurance, which listed at a 17% premium on Day 1.
With the receipt of the final observation letter, Reliance General Insurance Company edges closer to its eventual IPO.
The company provides insurance related to fire, motor, health, home, travel, weather, crop, etc.
The IPO shares comprise about 25% of the company’s projected equity base on listing.
The offering involves fresh issue of upto 16.77 mln equity shares and the sale of 50.31 mln shares by shareholder Reliance Capital, which owns 100% of the shares at present.
It has appointed Motilal Oswal Investment Advisors Limited, Credit Suisse Securities Private Limited, Edelweiss Financial Services Limited and UBS Securities India Private Limited to run the books for building the IPO.
“The Net Proceeds from the fresh issue will be utilised for augmenting the solvency margin and consequently increase the solvency ratio, to meet future capital requirements which are expected to arise out of growth,” it said.