Reliance Life Insurance: First-ever Insurance IPO
Reliance Capital, Anil Dhirubhai Ambani (ADA) Group Company is planning the first-ever Initial Public Offering (IPO) by an Insurance Company in India by taking its subsidiary – Reliance Life Insurance Public.
The Company is looking to divest up to 26% in its Insurance arm through an IPO as well as by inducting a strategic Investor.
Reliance Capital is looking to divest 10-26% in its life insurance arm. This will be through a placement with a strategic investor as well by selling shares to the public. There will be a mix of a fresh issue of shares as well as sale of shares by the parent company.
This way, funds will be infused both into life insurance business and Reliance Capital. The process will be finalized in next 3-4 months.
While most Big insurance companies in India are joint ventures between foreign insurance majors and Indian partners, Reliance Capital had so far chosen to go solo. According to market rumors, Reliance Life Insurance would be valued over Rs.12,000 Crore.
Among the private insurance companies, Reliance Capital subsidiary is ranked fourth in terms of total premium behind ICICI, SBI Life and Bajaj Allianz.
Anil Ambani is very intelligent. He is an expert in taking Businesses public. He is very smart. By taking troubled Life Insurance Business public, he will raise the Capital for both the life insurance company as well as its parent company Reliance Capital.
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