RGI Secures ₹200 Crore from RCapital for Growth

Published By: The Ecnomic Times​

Published Date: 19-07-2023

Lenders of Reliance Capital (RCAP) have approved capital infusion into Reliance General Insurance (RGI) to boost its solvency margin. The infusion is expected by August-end, with RGI planning to raise an additional ₹400 crore in Tier 2 capital afterwards to accelerate growth.

This development comes as RCAP's Committee of Creditors (CoC) approved IndusInd International Holdings Ltd's (IIHL) resolution plan with 99.6% votes, potentially bringing ₹10,000 crore to lenders. The administrator has submitted this plan to the NCLT for approval.

RGI had previously requested ₹600 crore from RCAP, citing that delays in RCAP's resolution were causing business stress. The company argued that borderline solvency was hurting client relationships and partnerships, giving competitors an advantage.

As one of RCAP's most valuable business verticals alongside Reliance Nippon Life Insurance, RGI expects this capital infusion to improve regulatory standing with IRDAI while demonstrating continued promoter support.