Reliance General Insurance, part of Anil Ambani-led Reliance, plans to file fresh papers with the Sebi 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 the primary markets as lack of investors’ appetite for the IPO and volatile equity market conditions has 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 market watchdog.
According to merchant banking sources, the company is very keen to come out with its IPO and will refile the draft red herring prospectus (DRHP) with Sebi very soon.
“The timing of the company’s IPO will depend on market conditions,” they added.
A 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 Sebi’s approval in November 2017.
The IPO comprised fresh issue of a little over 1.67 crore shares by the company and an offer of sale by Reliance Capital of 5.03 crore shares. The firm was planning to utilise the proceeds from the issue to augment its solvency margin.