Billionaire Anil Ambani-led Reliance General Insurance Co. Ltd said on Monday its board has approved a plan to float an initial public offering (IPO) in the current financial year.
The listing is subject to approval from shareholders and regulators, India’s fourth-largest private sector general insurance firm said in a statement. It didn’t give any details of the planned offering.
Reliance General joins a growing list of insurance companies – both general and life – that are planning to go public. These firms include SBI Life Insurance Co Ltd, National India Assurance (NIA), General Insurance Corporation of India (GIC Re), and ICICI Lombard General Insurance Co Ltd.
VCCircle first reported last week about Reliance Group’s plans to take the general insurance arm public this fiscal year. The company is looking to raise about Rs 1,200 crore ($190 million) from the IPO, people in the know told VCCircle.
Late last month, VCCircle reported that the country’s largest private-sector general insurer, ICICI Lombard, had initiated its listing process and shortlisted merchant banks for an IPO.
Last week, Reliance Nippon Life Asset Management Ltd, the asset manager to Reliance Mutual Fund, had said its board of directors had approved a plan to float an IPO.
Reliance General Insurance was incorporated in August 2000. It is majority-owned and operated by Reliance Capital Ltd, the group’s diversified financial services company.
It offers general insurance products, including motor insurance, health insurance, travel insurance and home insurance. It also offers corporate insurance, such as fire, engineering, marine, liability and package insurance; group mediclaim insurance; and education insurance to individuals and corporate clients.
The company’s gross written premium grew 40% to Rs 4,007 crore in 2016-17, the company said. Its profit before tax stood at Rs 130 crore for 2016-17, up 32% from the previous year.
The company said it has a diversified distribution network through strong partnerships with major banks including IndusInd Bank, Catholic Syrian Bank, Andhra Bank and Bank of India.