"Reliance Capital is looking to divest 10-26% in its life insurance arm. This will be through a placement with a strategic investor as well by selling shares to the public. There will be a mix of a fresh issue of shares as well as sale of shares by the parent company. This way, funds will be infused both into the life insurance business and Reliance Capital. The process will be finalised in the next three-four months," said this person. When contacted by ET, Reliance Capital CEO Sam Ghosh said that the company was evaluating several options.
Current government guidelines allow a 26% foreign investment in the insurance sector and it is likely that the FDI limit in this sector will be hiked to 49% under the new government. While most big insurance companies in India are joint ventures between foreign insurance majors and Indian partners, Reliance Capital had so far chosen to go solo. But with the market picking up and valuations on the rise, the company is now looking at the option of bringing a foreign partner as well as going to bourses to raise funds.
The person familiar with the development said Reliance Life Insurance would be valued well in excess of Rs 12,000 crore though this could not be independently ascertained.
Among the private insurance companies, the Reliance Capital subsidiary is ranked fourth in terms of total premium behind ICICI, SBI Life and Bajaj Allianz, and third in terms of weighted premium. It has increased its market share from 8.1% in FY08 to 10.3% in FY09.
gaurie.mishra@timesgroup.com
Current government guidelines allow a 26% foreign investment in the insurance sector and it is likely that the FDI limit in this sector will be hiked to 49% under the new government. While most big insurance companies in India are joint ventures between foreign insurance majors and Indian partners, Reliance Capital had so far chosen to go solo. But with the market picking up and valuations on the rise, the company is now looking at the option of bringing a foreign partner as well as going to bourses to raise funds.
The person familiar with the development said Reliance Life Insurance would be valued well in excess of Rs 12,000 crore though this could not be independently ascertained.
Among the private insurance companies, the Reliance Capital subsidiary is ranked fourth in terms of total premium behind ICICI, SBI Life and Bajaj Allianz, and third in terms of weighted premium. It has increased its market share from 8.1% in FY08 to 10.3% in FY09.
gaurie.mishra@timesgroup.com
SUBSCRIBE TO Free SMS Alerts on India Stock Markets
OR SEND SMS "ON WAY2TRADE " TO 9870807070
DisasterAwareness | Health | Insurance | Forex| Commodities|
Indian Coins to traeasure for Life Buy at ebay
Chat 
ways2invest 
wilint
ways2invest wilintContact Me 
Ways2Health Best and Worst Brain Foodsw
So, try now
Posts
No comments:
Post a Comment