Reliance General Insurance receives in-principle nod from IRDA for IPO

Reliance General Insurance, a wholly owned subsidiary of Reliance Capital, has received in-principle approval from the Insurance Regulatory and Development Authority for the process of its proposed IPO.

Listing of Reliance General Insurance is expected to be completed in FY18, subject to necessary approvals, the company said in its filing.

Sources told CNBC-TV18 that the general insurance company may file draft red herring prospectus for its IPO, with capital market regulator SEBI by September-end.

The company is planning to launch IPO by November.

CNBC-TV18 learnt that the wholly-owned subsidiary of Reliance Capital is looking to raise Rs 1,500-2,000 crore by diluting upto 25 percent through IPO.

Reliance General Insurance provides a wide range of general insurance products like fire, motor, health, home, crop, travel etc.

Meanwhile, Reliance Capital's another subsidiary Reliance Nippon Life Asset Management Company is likely launch its initial public offer by first week of November, sources in know of the development told Moneycontrol.

Anil Ambani-led Reliance Group's asset management arm had filed draft papers with markets regulator Securities and Exchange Board of India to float an IPO on August 18 which is expected to value the company at about Rs 18,000 crore, according to merchant bankers.

This would be the first initial public offering by an asset management company in India, although UTI Mutual Fund IPO have been in the works for a long time.

At 14:34 hours IST, the share price of Reliance Capital was quoting at Rs 752.00, down 8.30 percent due to demerger of home finance business that is expected to list on exchanges in second half of September.