New Delhi: Reliance General Insurance, part of Anil Ambani-led Reliance, plans to file fresh papers with Sebi to float an initial public offer as the regulatory approval for the insurer's IPO is set to lapse this month, merchant banking sources said.
The company failed to tap primary markets as lack of investors' appetite for the IPO, and volatile equity market conditions forced the insurer to postpone its plans.
Sebi's approval for IPOs is valid for one year, which will expire on November 29 in the case of Reliance General Insurance Company, according to data available with markets watchdog.
According to the merchant banking sources, the company is very keen on coming out with its IPO and will refile the draft red herring prospectus (DRHP) with the Sebi very soon.
"The timing of the company's IPO will depend on market conditions," they added.
When asked, Reliance General Insurance spokesperson declined to comment on the company's IPO status.
The firm had earlier filed its DRHP in October last year for which it received the Sebi approval in November 2017.
The IPO comprised fresh issue of a little over 1.67 crore shares by the company and an offer of sale of 5.03 crore shares by Reliance Capital.
The firm was planning to utilise the proceeds from the issue towards augmenting the solvency margin and consequently increasing the solvency ratio. Besides, the money was to be used to meet future capital requirements.
Apart from Reliance General Insurance, Seven Islands Shipping's IPO approval will lapse on November 10, and that of CMS Info Systems will end on November 29, according to the Sebi data.
As per the Sebi's regulations, a firm gets one year to hit the primary market after receiving approval from the markets watchdog. In case a firm fails to do so during this period, it has to refile the prospectus with Sebi seeking fresh clearance.
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