Reliance Insurance intends to file fresh IPO papers

The Anil Ambani led Reliance General Insurance, plans to file fresh IPO papers with SEBI. The company intends to do so to float an initial share-sale as the regulatory approval for the insurer's IPO is set to lapse this month, merchant banking sources said.

The company failed to tap primary markets as lack of investors' appetite for the IPO, and volatile equity market conditions forced the insurer to postpone its plans.

Sebi's approval for IPOs is valid for one year, and it will expire on November 29 in the case of Reliance General Insurance Company, according to data available with markets watchdog.

According to the merchant banking sources, the company is very keen on coming out with its IPO and will refile the draft red herring prospectus (DRHP) with the Sebi very soon.

"The timing of the company's IPO will depend on market conditions," they added.

When asked Reliance General Insurance spokesperson declined to comment on the company's IPO status.

The firm had earlier filed its DRHP in October last year for which it received the Sebi approval in November 2017. The IPO comprised fresh issue of little over 16.7 million shares by the company and an offer of sale by Reliance Capital of 50.3 million shares.

The firm was planning to utilise the proceeds from the issue towards augmenting the solvency margin and consequently increasing the solvency ratio. Besides, the money was to be used to meet future capital requirements, which are expected to arise out of growth.

Apart from Reliance General Insurance, Seven Islands Shipping's IPO approval will lapse on November 10, and that of CMS Info Systems will expire November 29, as per the Sebi's data.

As per the Sebi's regulations, a firm gets one year to hit the primary market after receiving approval from the markets watchdog. In case a firm fails to do so during this period, it has to refile the prospectus with Sebi seeking fresh clearance.