New Delhi: The Securities and Exchange Board of India (Sebi) has sought a clarification from Reliance General Insurance Co., part of Anil Ambani’s Reliance Group, on its proposed initial public offering (IPO), the latest update with markets regulator showed.

Without disclosing details of clarifications sought, Sebi has said ‘clarifications (are) awaited from lead manager on the proposed public issue. As per the latest weekly update of processing status of draft offer documents filed with it, the Sebi said that clarifications were awaited on the company’s proposed IPO as on 24 November. The next update would be available on 4 December.

Sebi said that it might issue observations on Reliance General Insurance’s IPO document within 30 days from the date of receipt of satisfactory reply from the lead merchant bankers to the clarification or additional information sought. The regulator had last received any communication from the company on 23 November.

Reliance General Insurance had filed draft papers with Sebi for an IPO in October. The proposed IPO comprises fresh issue of little over 1.67 crore shares by the company and an offer for sale by Reliance Capital of 5.03 crore shares, according to the draft papers.

The company plans to utilize the proceeds from the fresh issue towards augmenting the solvency margin and consequently increase the solvency ratio. Besides, the money will be used to meet future capital requirements, which are expected to arise out of growth. At the end of March this year, Reliance General Insurance’s book value stood at Rs1,250 crore.

The company’s valuation is expected to be over Rs6,000 crore, an average multiple of around five times, merchant banking sources said. Motilal Oswal Investment Advisors, Credit Suisse Securities (India) Pvt Ltd, Edelweiss Financial Services and UBS Securities are the global co-ordinators and book running lead managers to the issue.

Haitong Securities and IDBI Capital Markets & Securities are the book running lead managers. Reliance General Insurance, which received in-principle approval from insurance sector regulator Insurance Regulatory and Development Authority (IRDAI) in September for the IPO, expects to get listed in the current financial year.

Earlier this month, another group firm—Reliance Nippon Life Asset Management—got listed on the bourses.