Reliance Capital- Eyeing IPO for Divestment option- Reliance Insurance..
Sam Ghosh, Chief Executive Officer of Reliance Capital, said the company was evaluating all options for divestment in life insurance business. “We will consider if we want to go in for part divestment through an initial public offer (IPO), a strategic partnership or perhaps a combination of both,” he said. He further added that the company’s new business achieved profit (NBAP) for FY09 stood at Rs 620 crore.
They are evaluating all options in terms of what should they do. They are not looking at 49% because it is 100%-owned life insurance company, at this point. However, in due course, they will look at whether to look at a part divestment whether through an initial public offer (IPO) or through a strategic partner or through a combination of both.
They haven’t started the process at this point. In process of evaluating each option to go down and then, on that basis, they will decide whether to go with a strategic partner or go for an IPO, depending on what is best for the company. As the company is being run currently by the Reliance Capital team, the strategic partner can bring in certain value. So, similarly from an IPO side, they can bring in capital. Thus, both options are available or a combination of the two is also available to them.
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