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Rel Cap mulls IPO, stake sale of life insurance biz

Last Updated: Tuesday, July 21, 2009 - 14:33

Mumbai: Anil Ambani group firm Reliance Capital said on Tuesday it is planning to bring an initial public offer for its life insurance business or go in for a strategic stake sale to unlock shareholder value.
Unveiling the plans at Reliance Capital`s Annual General Meeting, ADA Group Chairman Anil Ambani said he is considering various options to unlock value of its life insurance business - "from a potential IPO to strategic or financial stake sale, or even a combination of both - subject to necessary approvals."

"A final decision in this matter will be taken shortly, driven by the sole objective of maximising returns for our shareholders," he added.

Since the past four years the company`s life insurance business has grown rapidly, emerging as the top four private life insurance players in India.

Earlier in May, Reliance Capital Chief Executive Sam Ghosh had said the company is in the process of divesting up to 26 percent stake in its life insurance subsidiary and mulling over options like bringing in a strategic foreign investor and an IPO.

During the financial year ended March 31, 2009, Reliance Life Insurance had earned new business premium of over Rs 3,500 crore, registering an annual increase of over 28 percent.

Bureau Report

First Published: Tuesday, July 21, 2009 - 14:33

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