Reliance Group's financial arm, Reliance Capital is working out plans to sell stake in its four-year-old life insurance business, paving a way for its entrance in private equity and investment banking business.

Confirming the development at the company's annual general meeting, Reliance Capital Chairman Mr. Anil Ambani said, "A final decision in this matter will be taken shortly."

Reliance Life Insurance, having over three million policies in force, performed well among top four private life insurance players in India. The company registered an increase of over 28 per cent, generating new business premium of over Rs 3,500 crore. The firm has a very effective business network across the country, consisting of
1,145 branches and 1.5 lakh agents.

Company's proposes IPO may take some time as it has yet to avail guidelines from the Insurance Regulatory Development Authority, necessary for private sector life insurance companies to start offering.

Mr. Ambani added, "Given the scale and magnitude of our relationship across corporate India and the sheer size and reach of our distribution network, we are ideally positioned to create a significant presence in this business."

Shares of the firm declined 1.65 per cent and closed at Rs 869.30 on the BSE.