Reliance General Insurance Canceled Its IPO Plan
Reliance General Insurance Ltd is the wholly-owned subsidiary of Reliance Capital Ltd. It has filed public offering draft prospectus with securities and exchange board of India. As of the report, Reliance General Insurance withdraws offer documents. With this action, a question raised in the market. Why Reliance General Insurance Ltd withdraws its proposal? But, the reason has not been revealed yet.
According to the source, the RGIL has filed draft papers on February 8, 2019. RGIL IPO offer documents submitted with Sebi through Motilal Oswal Investment Advisors. As of the draft papers, the firm has planned to offer a fresh issue worth Rs 200 crore and an offer for sale of 79,489,821 shares by Reliance Capital.
But, the firm has changed its decision and withdraw its offer documents. As of the Sebi report, RGIL IPO draft papers have been withdrawn by Motilal Oswal Investment Advisers on 24th October 2019.
According to the Sebi norms, if any company seems to raise funds through the sale of shares to the public investors such as IPOs (public offerings) need to get the Sebi approval.
Because the net proceeds utilized for future capital requirements, for expanding the business, and increasing its financial growth, or improving the debts margin, etc.
Reliance GIL has postponed its public offering in 2017. The firm had submitted its IPO draft papers with the market regulator in October 2017. Moreover, the Sebi had approved RGIL’s IPO proposal. But, it has not driven its IPO plan due to the active equity market conditions. Moreover, the company has failed to hit the main market because investors have a negative opinion on its plan.