Reliance General Insurance plans IPO
The Anil Ambani-controlled Reliance Capital will float an iniitial public offering (IPO) of equity for its general insurance arm and list on the stock exchange. This could give the company a valuation of ~6,000 crore.
Reliance General Insurance is targeting an IPO by the end of this financial year. It might also look for a strategic partner.
Fully owned by Reliance Capital, it is planning to dilute 10 per cent of its shareholding in 2017-18. In the next three years, to dilute 25 per cent.
Rakesh Jain, executive director and chief executive, said listing would enable individual investors to participate in a high growth and new wealth creation opportunity. The company has not ruled out the possibility of stake sale and thereby getting a strategic partner but gave no time line for this.
In the general insurance business, ICICI Lombard and government-owned New India Assurance and General Insurance Corporation are planning to get listed in the near future. ICICI Prudential Life Insurance is the only one in that segment which has listed till now.
With 40 per cent growth in premiums earned in FY17, Reliance General Insurance got ~4,007 crore on this count, from ~2,792 crore in FY16. Profit before tax rose 32 per cent to ~130 crore in FY17. The investment portfolio at end-March was ~6,724 crore, up 25 per cent. Assets under management grew 25 per cent to ~6,700 crore.
He said the company is well positioned to capitalise on opportunities across retail, corporate and government supported consumer segments.
“The listing will enable retail investors to participate in this high growth and new wealth creation opportunity,” he said in a statement.
In the last financial year, the company saw a profit of ~130 crore and increased its investment book to ~6,724 crore. Central Depository Services India (CDSL) will launch its much-awaited initial public offering (IPO) on June 19. Promoter BSE will sell 26 per cent stake in the depository via the IPO to comply with the shareholding requirement imposed by markets regulator Securities and Exchange Board of India (Sebi). The exchange currently holds 50.05 per cent stake in CDSL. To meet Sebi norms, it had to bring down its holding to 24 per cent by March 31, 2017. Sebi, however, has extended the deadline till June 30. CDSL’s ~524-crore IPO will close on June 21 and the listing will take place before June 30.
The IPO entirely comprises of secondary share sale of 35.2 million shares which are being offered in the price band of ~145-149 per share. Besides the BSE, State Bank of India, Bank of Baroda and Calcutta Stock Exchange will be offering their 4.57 per cent, 2.08 per cent and 0.96 per cent stake, respectively, in the IPO.
The offering will comprise of 33.65 per cent of paid-up equity share capital of CDSL. At the top-end of the price band, CDSL will be valued at around ~1,550 crore. After BSE, CDSL is the