Reliance General Insurance Company Ltd (RGICL) on Monday said it has raised a capital of Rs 200 crore by issuing equity shares to debt-ridden parent entity Reliance Capital. Reliance Capital is under the resolution process as per the Insolvency and Bankruptcy Code.
Infusion has been done following the lenders of Reliance Capital giving approval for the capital support to improve the solvency margin of the general insurance arm.
With this capital raise, RGICL is reinforcing its commitment to financial strength and readiness to capitalize on emerging opportunities in the insurance sector, the company said in a statement.
The shareholders of the company at its Extraordinary General Meeting (EGM) held on July 29, 2023, have approved infusion of capital of about Rs 200 crore in the company, by way of the issue of equity shares on a private placement basis, it said.
This capital infusion is aimed at pursuing new business opportunities for growth and securing the company’s position amongst the market leaders, it said.