Reliance Capital's insurance arm receives in-principle nod from IRDAI for IPO

Reliance Capital's insurance arm, Reliance General Insurance Company Ltd (RGI) on Tuesday received in-principle nod from insurance regulatory body for the process of its proposed initial public offer (IPO). 

RGI in a press release said that Insurance Regulatory and Development Authority of India (IRDAI) has approved the IPO and the listing is expected to be completed in the current financial year depending on the "necessary approvals".

In June, Reliance Capital Board had approved the listing plans. 

Rakesh Jain, Executive Director and CEO, Reliance General Insurance had said, "The listing will enable retail investors to participate in this high growth and new wealth creation opportunity."

"The General Insurance industry is slated to grow with the economy where affluence led consumption will act as its primary growth driver. The coming years are likely to witness a double digit growth in the sector largely due to disproportionately low penetration of insurance," Jain added.

Looking at the company's financial performance, it had 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 March 31, 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.