Reliance General Insurance gets listing nod; IPO soon
- Reliance General Insurance gets board approval for listing
- Two subsidiaries of Reliance Capital have received approval for listing
- This would be third insurance company to opt for IPO route
Reliance Capital on Monday said its insurance arm Reliance General Insurance (RGI) has received board approval for listing on stock exchanges.
Reliance General Insurance is a 100% subsidiary of Reliance Capital.
Rakesh Jain, Executive Director and CEO, Reliance General Insurance said, "The listing will enable retail investors to participate in this high growth and new wealth creation opportunity."
"The General Insurance industry is slated to grow with the economy where affluence led consumption will act as its primary growth driver. The coming years are likely to witness a double digit growth in the sector largely due to disproportionately low penetration of insurance," Jain added.
Listing is expected to be completed by the current financial year 2017-18 (FY18) subject to necessary shareholders, regulatory and other approvals.
As on March 2017, RGI’s gross written premium stood at Rs 4007 crore registering a growth of 40%.
In FY17, net profit of RGI stood at Rs 130 crore, growing by 32%,while the investment book stood at Rs 6,724 crore, up 25% on year-on-year basis.
RGI has a diversified distribution network through strong partnerships with major banks including IndusInd Bank, Catholic Syrian Bank, Andhra Bank and Bank of India.
This would be the third company who has opted for an IPO.
State Bank of India's SBI Life is expected to roll out IPO within 18-24 months. So far, ICICI Prudential Life Insurance has been listed after its Rs 6000 crore IPO - which got oversubscribed by 10.48 times.
Recently, Reliance Capital announced that it's mutual fund subsidiary Reliance Nippon Life Asset Management (RNAM) has also received boards approval for its plan to get listed through IPO route.