Rakesh Jain, CEO of Reliance General Insurance said, “With this capital infusion, we are well-equipped to seize opportunities, innovate, and continue providing best-in-class insurance solutions.”
Mumbai:
Reliance General Insurance Company Ltd (RGICL), in a strategic move today, has raised the capital of Rs 200 crores by issuing equity shares to its promoter Reliance Capital Limited, debt ridden company, which is currently undergoing Insolvency and Bankruptcy Code (IBC) proceedings .
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 crores in the company, by way of the issue of equity shares on a private placement basis. This capital infusion is aimed at pursuing new business opportunities for growth and securing the company’s position amongst the market leaders.
Rakesh Jain, CEO, Reliance General Insurance said, “With this capital infusion, we are well-equipped to seize opportunities, innovate, and continue providing best-in-class insurance solutions.”
Currently, Reliance Capital is undergoing Insolvency and Bankruptcy Code (IBC) proceedings and Reliance Capital’s Committee of Creditors (CoC) has given its approval to the resolution plan proposed by Indusind International Holdings Ltd (IIHL) bringing closure to the long-drawn insolvency resolution process of the company.
Reliance Capital has submitted an application for the resolution plan of Indusind International Holdings Ltd (IIHL), the investment arm of the Hinduja Group, as approved by the Committee of Creditors of Reliance Capital Limited with the National Company Law Tribunal (NCLT).
As per the resolution plan offered to Reliance Capital, IIHL has proposed to acquire the firm for a sum of Rs 9,661 crore in upfront cash, as part of the Insolvency and Bankruptcy Code (IBC) proceedings.
Meanwhile, Reliance Capital on Sunday reported coming back in black in the April-June quarter of 2023-24 with a consolidated net profit of Rs 444 crore for the period driven by the good performance of group companies.
The financial services firm under the debt resolution process had a net loss of Rs 491 crore in the corresponding quarter of 2022-23. The company’s total income during April-June 2023 stood at Rs 6,001 crore against Rs 3,604 crore in the year-ago quarter, Reliance Capital said in a regulatory filing.
Its total expenses rose to Rs 5,560 crore, from Rs 4,068 crore in the first quarter of the previous year.
The company has a presence in finance and investment business, general and life insurance, commercial finance and others.