Mumbai, Nov 30 (IANS): Reliance General Insurance Company Ltd on Thursday said securities market regulator Securities and Exchange Board of India (SEBI) has issued its final observation letter to the draft red herring prospectus (DRHP) filed by it.

The DRHP was dated October 9, 2017.

In a statement issued here, Reliance General Insurance said the initial public offer (IPO) size aggregates to 25 per cent of the post issue paid up capital of the company and comprises of a fresh issue of upto 1,67,69,995 equity shares by the company and an offer for sale by Reliance Capital Limited of upto 5,03,09,984 equity shares.

The face value of the equity shares is Rs 10 per share.

The net proceeds from the fresh issue will be utilised for augmenting the solvency margin and consequently increase the solvency ratio, to meet future capital requirements which are expected to arise out of growth.

Reliance General Insurance is a wholly owned subsidiary of Reliance Capital Limited.

For this proposed IPO, Reliance General Insurance has appointed Motilal Oswal Investment Advisors Limited, Credit Suisse Securities (India) Private Limited, Edelweiss Financial Services Limited and UBS Securities India Private Limited as the global coordinators and book running lead managers to the issue.

Haitong Securities India Private Limited and IDBI Capital Markets and Securities Limited are the book running lead managers and Karvy Computershare Private Limited is the Registrar.