Anil Ambani Group’s life insurance venture Reliance Life expects to tap the capital market with its initial public offer in the first quarter of the next fiscal, a top company official said here.
“It will be realistic to think that the Reliance Life IPO happens sometime in the first quarter of the next financial year,” Reliance Capital CEO Sam Ghosh told PTI.
Reliance Capital, the holding company of Reliance Life Insurance, is currently waiting for the final regulatory guidelines on the issue from insurance regulator IRDA and the subsequent clearance from the Finance Ministry, he said.
Noting that a decision was yet to be taken on the amount to be raised from the IPO and any pre-IPO placement of shares with possible strategic or private equity partners, Mr. Ghosh said that Reliance Life would get Rs. 700 crore from the share sale and the remaining amount would go to Reliance Capital.
“We are awaiting guidelines on IPO for the insurance sector...it could happen in the first quarter of the next financial year,” Reliance Capital chief said.
Reliance Life could be the first life insurance company in the country to come out with an IPO once the guidelines are framed for public offer and listing of insurance firms.
The Insurance Act specifies that Indian promoters having more than 26 per cent shareholding shall after 10 years reduce it in some appropriate manner or within such period the central government may decide.