November 30: The Securities and Exchange Board of India (SEBI) has issued its final observation letter to the draft red herring prospectus (DRHP) dated October 9, 2017 filed by Reliance General Insurance Company Limited.
The IPO size aggregates to 25% of the post issue paid up capital of RGICL and comprises of a fresh issue of upto 1,67,69,995 equity shares by the Company (“Equity Shares”)and an offer for sale by Reliance Capital Limited of upto 5,03,09,984Equity Shares. The face value of the Equity Shares is Rs. 10 per Equity Share.
For this proposed IPO, the Company has appointed Motilal Oswal Investment Advisors Limited, Credit Suisse Securities (India) Private Limited, Edelweiss Financial Services Limited and UBS Securities India Private Limited as the global coordinators and book running lead managers to the issue. Haitong Securities India Private Limited and IDBI Capital Markets & Securities Limited are the book running lead managers and Karvy Computershare Private Limited is the Registrar.
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.
RGICL provides a wide range of general insurance products like fire, motor, health, home, travel, weather, crop, etc. Reliance General Insurance is a wholly owned subsidiary of Reliance Capital Limited.