Reliance Life expects to come out with its initial public offering (IPO) in 2011 as soon as the regulator — Insurance Regulatory and Development Authority (IRDA) — announces IPO guidelines. Industry insiders say the new norms will be out in the next 3 to 4 months.
Reliance Life is a part of Anil Ambani-controlled ADA group’s Reliance Capital.
“We are happy that Sebi has come out with the disclosure norms and we will come out with the IPO shortly after the guidelines are announced,” said Sam Ghosh, CEO, Reliance Capital, who is also eyeing for the banking licence for which the guidelines are expected soon. “Draft guidelines are expected in January and we will have to see whether we qualify for the same. If regulations permit we will apply for the banking licence.”
Earlier this month, Deepak Parekh, chairman, HDFC, said that HDFC Life is also planning its IPO and is waiting for the insurance bill to be passed.
Reliance Capital announced a 28% decline in its net profit for the quarter ended September 2010. Ghosh justifies the results by saying that all businesses have done well and the lower numbers are because the company is not booking capital gains.
“We do not want to book capital gains and want the businesses to deliver for themselves which they are doing now,” said Ghosh.