One of the most popular general insurance companies in the country, Reliance General Insurance is planning to file new papers for its initial public offering. According to a report by The Economic Times, the general insurance company will file the papers with the Securities and Exchange Board of India (SEBI).
The regulatory approval for Reliance General Insurance’s IPO will lapse this month, with this prompting the insurer to plan a fresh IPO. One of the reasons for the company to postpone its IPO plans was the volatile equity market.
The current approval for the IPO is set to expire on November 29. Reliance General Insurance had filed its draft red herring prospectus (DRHP) in October 2017, with the SEBI giving its approval to the same in November last year.
Current guidelines give firms a time period of one year from the time of receiving SEBI’s approval to issue the shares in the primary market. Firms which fail to do so are expected to refile the papers.
The initial IPO of the insurer comprised the issuance of 1.67 crore fresh shares. Reliance Capital was also offering the sale of 5.03 crore shares through the IPO.
Source: The Economic Times
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