Reliance General Insurance today said it has received in-principle approval from the Insurance Regulatory and Development Authority of India (IRDAI) for its initial public offering (IPO).
The insurance firm, which is a 100 per cent subsidiary of Reliance Capital, is expected to list during the ongoing fiscal. Reliance Capital plans to dilute about 25 per cent of its holding in the insurer.
According to sources, the valuation of the company is expected to be about Rs 7,000 crore.
The company that provides a range of general insurance products such as fire, motor, health, home, crop and travel, reported 41 per cent growth in business in 2016-17.
The company’s gross direct premium stood at Rs 3,935 crore in the year ended March, 2017, while profit before tax stood at Rs 130 crore, up 32 per cent.
The insurer is a participant in various government crop insurance schemes including Pradhan Mantri Fasal Bima Yojana.
Last fiscal, the company insured over 3 million farmers under this financial inclusion initiative.
Currently, ICICI Prudential Life is listed on the stock exchange, while Max Life insurance is indirectly listed through holding company Max Financial Venture.
At the same time, many other insurers such as HDFC Standard Life and SBI Life Insurance have also announced their plans for IPOs.