Reliance Life insurance will bring IPO to raise 2000 crore
Reliance Life insurance a ADAG Company will soon bring IPO. RLI will raise Rs. 2000 crore through its IPO. Reliance Capital Chief Executive Officer Sam Ghosh said, “We are evaluating various options, including listing on stock exchanges or even a strategic sale of a minority stake.” According to sources, the company planned to file the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) by the end of this month or early next month. Reliance Life Insurance is a wholly-owned subsidiary of Reliance Capital. With 10.3 per cent market share among the private insurance players, Reliance Life is ranked fourth in terms of total premium and third in terms of weighted premium.
RLI will be first insurance provider to bring IPI. Last year, ICICI Bank made an attempt to list its insurance business by creating a holding company structure. However, the Reserve Bank of India (RBI) gave it a thumbs down. Under the current norms, it would be difficult for other Indian insurance players to list on exchanges as in most of the cases, the limit of 26 per cent foreign investment has been exhausted. Barring Reliance Life Insurance, Sahara Life Insurance and Life Insurance Corporation of India, foreign strategic investors have 26 per cent stake in almost all insurance companies in the country. once the pending Insurance Bill is passed and the limit for foreign investment is increased to 49 per cent from the current level of 26 per cent, many joint ventures would explore the possibility of entering the capital market.
