Reliance Life Insurance plans to launch an initial public offering (IPO) about Rs.3000 crore, if it gets government approval. It plans to divest 20% in IPO after getting government nod.
· The company had approached the Finance Ministry seeking permission to launch aninitial public offering (IPO). Under the current regulations, a company cannot list unless it has been in existence for 10 years — except in case of the central government’s permission.
· The size of the Reliance Life IPO is expected to be about Rs 3000 crore
· The company was planning to divest a 10% stake in pre-IPO placement and a further 10% to public, if it gets and approval.
· “If they do not get approval due to some unforeseen reason then we’ll go for a strategic partner or a financial partner for 20% or up to 26% & the strategic partner would most likely be a foreign insurance company.
· Company main aim behind the proposed insurance IPO was to unlock value for parent Reliance Capital.
· Reliance Capital ranks No. 4 among India’s private life insurers, where public sector giant Life Insurance Corp is stills the dominant player.
· Reliance Life hopes to break even by the next financial year. Total premium is expected to quadruple to Rs20,000 crore ($4 billion) by the year to March 2012, from Rs4,930 crore at the year ended March 2009,
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