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Reliance General Insurance on Monday filed its Draft Red Herring Prospectus (DRHP) with market regulator SEBI for making an initial public offering.
Of the over 6.7 crore equity shares on offer, the Anil Ambani Group company is issuing about 1.67 crore fresh equity shares with a face value of ₹10 each and 5.03 crore equity shares are an offer-for-sale by Reliance Capital. The objects of the fresh issue are to augment the solvency margin and consequently increase the solvency ratio of the private sector general insurer to meet future capital requirements which are expected to arise out of growth in business.
The private sector general insurer said 10 per cent of the size of the offer will be available for reservation to the Reliance Capital shareholders under the Reliance Capital Shareholders’ Reservation Portion.
The company offers a 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 segments, which it provides through multiple distribution channels. The DRHP, quoting an ICRA report, said based on the company’s gross direct premium income for the quarter ended June 30, 2017, it is among the five largest private sector general insurance companies in India.
In the financial year 2017, Reliance General Insurance issued over 41 lakh policies and its total gross direct premium income was over ₹3,935 crore.
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