Reliance General gets final clearance for IPODecember 4 2017 by InsuranceAsia News Staff
India’s Reliance General Insurance has secured a final observation letter on the draft red herring prospectus it filed for its initial public offering (IPO) application.
The observation letter was issued on November 30 by the Securities and Exchange Board of India (Sebi).
Based on Reliance General’s plans, the IPO will account for 25% of the post issue paid-up capital of the insurer and comprise a fresh issue of up to 16.7 million equity shares by the company.
It will also include an offer for sale by Reliance Capital of up to 50.3 million equity shares.
The face value of an equity share is Rs10. Reliance will use the net proceeds from the fresh issue to increase the solvency margin and consequently boost the solvency ratio in order to meet future capital requirements which are expected to arise out of growth.
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