Reliance Insurance Files Fresh IPO Papers, Removes Edelweiss As Merchant Banker

Reliance General Insurance, part of Anil Ambani-led Reliance Group, has filed fresh papers with the Securities and Exchange Board of India to float an initial share sale after the regulatory approval lapsed in November, market sources told PTI.

According to sources, the company’s initial public offering comprises fresh issue of shares worth Rs 200 crore, besides, an offer for sale of 7.94 crore shares by Reliance Capital. The company has removed Edelweiss as one of the lead merchant bankers to manage its IPO, they added.

The removal comes following the the Reliance Group accused Edelweiss Group entities of “illegal” and “motivated” actions in invoking the pledged shares of the group’s three listed firms and selling them in open market causing a steep fall in share values.

Further, it has appointed CLSA India and IndusInd Bank replacing UBS and IDBI Capital. It has also roped in Yes Securities. Other merchant bankers—Motilal Oswal Investment Advisors, Credit Suisse Securities, Haitong Securities—will continue to be associated with the company’s IPO.

The firm had earlier filed its draft papers in October 2017 for which it received the SEBI’s approval in November 2017.

The regulator’s approval for IPOs is valid for one year, which expired on Nov. 29, 2018 in the case of Reliance General Insurance Company. The company had failed to tap primary markets as lack of investor appetite and volatile equity market conditions forced the insurer to postpone its plans.

As per the SEBI’s regulation, a firm gets one year to hit the primary market after receiving approval. In case a firm fails to do so during this period, it has to refile the prospectus with SEBI seeking fresh clearance.

Earlier, the company’s IPO comprised fresh issue of a little over 1.67 crore shares by the company and an offer for sale of 5.03 crore shares by Reliance Capital.