Mumbai: Reliance General Insurance, part of Anil Ambani-led Reliance Group, has dropped Edelweiss as a lead merchant banker from managing its initial public offering (IPO).
The insurer recently filed fresh papers with Sebi to float an initial share sale after the regulatory approval for its IPO lapsed in November 2018.
According to the sources, the company's IPO comprises fresh issue of shares worth Rs 200 crore, besides an offer for sale of 79,489,821 shares by Reliance Capital.
The removal of Edelweiss from the merchant bankers list comes following the Reliance Group accusing Edelweiss Group entities of "illegal" and "motivated" actions in invoking the pledged shares of the group's three listed firms and selling them in open market, causing a steep fall in share values.
The company has appointed CLSA India and IndusInd Bank replacing UBS Investment Company and IDBI Capital. The other bankers for the IPO are Motilal Oswal Investment Advisors, Credit Suisse Securities, Haitong Securities and Yes Securities.
The firm had earlier filed its draft papers in October 2017 for which it received the Securities and Exchange Board of India's approval in November 2017.
