Reliance Life expects to tap the capital market with its initial public offer in Q1 of next fiscal stated Reliance Capital CEO Sam Ghosh.
However, Reliance Capital, the holding company of Reliance Life Insurance, is currently waiting for the final regulatory guidelines on the issue from insurance regulator IRDA and the subsequent clearance from the Finance Ministry.
Meanwhile, noting that a decision was yet to be taken on the amount to be raised from the IPO and any pre-IPO placement of shares with possible strategic or private equity partners, Reliance Life would get Rs 700 crore from the share sale and the remaining amount would go to Reliance Capital.
Moreover, Reliance Life could be the first life insurance company in the country to come out with an IPO once the guidelines are framed for public offer and listing of insurance firms.
The IRDA has already indicated that waiting period should be reduced to 5 years instead of current regulation of 10 years while Reliance Life had earlier requested the Finance Ministry to allow it to launch the IPO before completion of the 10-year operation clause.
On the other hand, the paid-up capital of the company currently stands at Rs 2,800 crore and apart from raising money through public offer, the insurer is also planning to divest part of stake to strategic partner.
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well said in reliance controversy carry on
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