Private-sector insurer Reliance General Insurance (RGI) has received the board’s approval for an initial public offering (IPO) in which the promoters will dilute a minimum 10% stake.
Reliance General Insurance is a wholly owned subsidiary of Anil Ambani’s Reliance Capital.
“We are planning to dilute minimum 10% in the current financial year and by 25% by FY’21, as regulation mandates,” Rakesh Jain, executive director and CEO, Reliance General Insurance, said while addressing the media on Monday.
Double digit growth
“The general insurance industry is slated to grow in the economy where affluence-led consumption will act as its primary growth driver. The coming years are likely to witness a double-digit growth in the sector largely due to disproportionately low penetration of insurance,” Mr. Jain added.
The insurance company has been scouting for a partner for sometime. Officials said the possibility will exist post IPO as well.
RGI, which had a networth of ₹1,257 crore as of March 2017, reported a net profit of ₹130 crore during the financial year FY’17.
Last week, another another group entity, Reliance Nippon Life Asset Management Company, said it plans to get listed.
At present, only ICICI Prudential Life Insurance is the only listed insurer in the country though few general insurance companies are planning to go for an IPO in the current financial year including ICICI Lombard and state-run New India Assurance.