Reliance Gen Insurance ‘waiting for favourable conditions’ to float IPO

Private sector Reliance General Insurance is still keen on listing on the bourses, though its regulatory approval for the initial public offering has lapsed.

“The market conditions are not very conducive and we are also close to some elections. We are waiting for favourable conditions,” said Rakesh Jain, Chief Executive Officer, Reliance General Insurance, adding that the insurer is still “IPO-ready”.

According to data available with SEBI, the regulator’s approval for IPO expired on November 29. It was valid for one year.

“Our approval has lapsed but we can revalidate it,” Jain told BusinessLine , adding that the insurer is not desperate to hit the markets as the current volatile conditions could impact value.

“Last six to eight months have been a bit unfortunate as the markets have been a bit choppy,” he said.

Meanwhile, commenting on the new standalone health insurer, Reliance Health Insurance, which is also part of the Anil Ambani-led Reliance, Jain said the two will not compete in any way.

“It is a separate company and is a subsidiary of Reliance Capital. We will continue to do our business. In financial services, banks have a variety of subsidiaries such as housing finance companies, NBFCs, micro-finance institutions,” he said, adding that there is adequate scope for all insurers due to the under-penetration of health insurance. “Health insurers come with a product focus (and for a) specific customer segment. General insurance companies will continue in their own way as multi-line insurers,” said Jain.

Clearing the air on the mediclaim cover to employees of Jammu and Kashmir government, Jain said Reliance General Insurance still has the mandate for it.

“As on date, there is not a single communication on the policy review which has come to us from the J&K government. We are servicing the policies, and hundreds of claims have been paid,” he said.

The insurer was appointed earlier this year to provide mediclaim policy by Jammu and Kashmir, which was under President’s rule and the Governor’s administration, although it was questioned by some.

Jain stressed the tender is in public domain, and that the bidding was a transparent process. “Our financial bid was the lowest by almost 35 per cent than the second bidder. The government has almost ₹100-crore savings on an annual basis. The government did what was appropriate in the tender,” he said.

Jain further said the insurer has worked with various State government insurance schemes in the past, such as those in Kerala, Odisha, Nagaland, Gujarat and Punjab.

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