IRDAI grants in-principle approval for Reliance General Insurance IPO

Reliance General Insurance Company Ltd (RGI), a 100% subsidiary of Reliance Capital Limited, today announced that it has received in-principle approval from Insurance Regulatory and Development Authority of India (IRDAI) for the process of its proposed IPO.

Listing of RGI is expected to be completed in FY18, subject to necessary approvals.

RGI provides a wide range of general insurance products like fire, motor, health, home, crop, travel etc. The Company outperformed the industry growth rate of 30%, and reported 41% growth in FY17. RGI's gross direct premium stood at Rs. 3,935 crore in the year ended 31st March, 2017.

Profit Before Tax stood at Rs. 130 crore, up 32%, while the investment book stood at Rs. 6,724 crore, up 25% for the year ending 31st March, 2017.

The Company has a diversified distribution network including corporate agents and bancassurance partners, amongst others.

RGI is an active participant in various government crop Insurance schemes - including the Pradhan Mantri Fasal Bima Yojna. In FY17, the company insured over 3 million farmers under this financial inclusion initiative.

Shares of RELIANCE CAPITAL LTD. was last trading in BSE at Rs.750.35 as compared to the previous close of Rs. 820.1. The total number of shares traded during the day was 1879979 in over 30952 trades.

The stock hit an intraday high of Rs. 761.25 and intraday low of 677. The net turnover during the day was Rs. 1395961972.

Source : Equity Bulls

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