Reliance General Insurance receives capital from parent company

This will be achieved through the issuance of equity shares on a private placement basis.

Reliance General Insurance (RGICL) recently raised Rs 200 crore in capital by issuing equity shares to its parent company, Reliance Capital, which is currently undergoing the resolution process as per the Insolvency and Bankruptcy Code.

During an Extraordinary General Meeting (EGM) held on 29 July, the shareholders of the company approved the infusion capital. 

This will be achieved through the issuance of equity shares on a private placement basis.

The purpose behind this capital infusion is to explore and pursue new business opportunities for the company's growth.

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Additionally, it aims to strengthen the company's position as a market leader in its industry.

The infusion of funds was approved by the lenders of Reliance Capital to enhance the solvency margin of its general insurance arm.

Through this capital raise, RGICL aims to strengthen its financial position and position itself to seize potential opportunities in the insurance sector.