Reliance Capital who stock is almost up by more than 45 percent in just 4 trading session has informed that its looking to divest up to 26 percent in its insurance arm Reliance Life Insurance through an IPO as well as by inducting a strategic investor.
Reliance Capital holds 100% in Reliance Life Insurance. Reliance Life Insurance would be valued well in excess of Rs 12,000 crore and they will have more clear picture on it in another 3 to 4 months.
Reliance Life insurance is considered to be 4th strongest in line next to ICICI, SBI Life and Bajaj Allianz. They have almost more than 10 percent share in the Indian insurance market.
According to the Industry sources, Reliance IPO may be delayed. Reliance Capital is the Company owned by Reliance ADA Group & Reliance Life Insurance is its subsidiary. Reliance Capital wants to raise money for itself also. So that the deal will be designed in such a manner that some IPO money will be channeled towards Reliance Capital while some IPO money will be gone to the fund of Reliance Life Insurance Itself.
Reliance wants to sell 26% of the Company and that’s why the IPO would be more than Rs.3,000 Crores (The Total Valuation of the Company is almost Rs.12,000 Crores).
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