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Reliance General Insurance Company (RGIC) on Wednesday withdrew its papers filed for an initial public offering (IPO) with the Securities and Exchange Board of India (SEBI). Reliance General Insurance was to raise around ₹200 crore in the IPO and an offer-for-sale of another 7.9 crore shares by Reliance Capital. No reason was given for withdrawal of the IPO.
The IPO papers or draft red herring prospectus were filed in February and Motilal Oswal Investment Advisors was the lead manager to the issue. The papers were withdrawn by Motilal Oswal.
The draft offer documents for the IPO have been “withdrawn by LM (Motilal Oswal Investment Advisors) vide email dated October 24, 2019,” according to SEBI.
Earlier in October 2017, RGIC had approached the SEBI with its IPO papers for which it had received approval in November 2017. But the company then did not go ahead with its plan mainly due to lack of investor interest in the primary markets.
IPO proceeds were to be utilised for future capital requirements, growth and expansion of the business, improving solvency margin and consequently solvency ratio.
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