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Journalism of Courage
Reliance Capital is mulling an initial public offer (IPO) for its insurance arm in FY 11 and its Chairman,Anil Ambani,assured shareholders of a liberal bonus issue next year when the company celebrates its 25th year of operations.
“We are considering the IPO of Reliance Life (insurance) in FY 11,” Ambani told shareholders at the company’s 24th annual general meeting in Mumbai.
Reliance Life is a subsidiary of Reliance Capital,the financial services arm of the Anil Dhirubhai Ambani Group (ADAG).
The Group is looking to unlock value in its life insurance venture through listing of Reliance Life as a separate company on the bourses.
Ambani said that the insurance regulator,IRDA,was currently at an advanced stage of finalising the guidelines for listing of life insurance companies.
“Once this is done,we will explore the possibility of creating value for our investors by listing our life insurance business,” he said.
Ambani said that Reliance Capital was poised to capitalise on the immense growth opportunity across its business segments like insurance.
Replying to shareholders query on a bonus issue,Ambani said,”next year,the company will be celebrating its 25th year and I assure that the company and its Board of Directors will consider a bonus issue and we hope that it will be a liberal one.”
