Reliance General Insurance Receives a Rs 200 Cr Parent Investment
On Monday, Reliance General Insurance Company Ltd. (RGICL) announced that it had raised Rs 200 crore in capital by issuing equity shares to its heavily indebted parent company Reliance Capital.
The Insolvency and Bankruptcy Code’s resolution procedure is now being used to Reliance Capital.
The financial assistance to increase the solvency buffer of the general insurance business was infused after the lenders of Reliance financial approved it.
RGICL stated in a statement that by raising capital, it is reaffirming its commitment to maintaining strong financial standing and being ready to take advantage of new possibilities in the insurance industry.
At the firm’s Extraordinary General Meeting (EGM) on July 29, 2023, the shareholders authorized the injection of capital of roughly Rs 200 crore via the issuance of equity shares on a private placement basis, the business said.
According to the corporation, this financial injection is intended to pursue new business prospects for expansion and to solidify the company’s place among the industry’s top players.
