India-based Reliance Capital is planning to make an equity infusion of Rs2bn ($24.36m) in its non-life subsidiary Reliance General InsuranceTimes of India has reported.

This move comes after the company obtained approval from the Committee of Creditors (CoC).

The fund infusion is aimed at boosting Reliance General Insurance’s solvency margin and preserving its market share.

Reliance Capital is currently facing bankruptcy proceedings, with lenders pursuing recovery of admitted claims totalling Rs236.66bn, the news publication noted. 

Lenders are expected to recover nearly Rs100bn by selling Reliance Capital to Hinduja Group, which has placed the highest bid.

Reliance General Insurance held a market share of 4.5% at the end of March 2023. 

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The company reported a premium of Rs28.46bn for Q1 FY24, indicating a 15% rise over the prior-year quarter. 

However, the growth rate has been slightly slower than the 17.4% average for the sector, which resulted in a marginal drop in the market share to 4.4%.

Reliance Capital became the subject of the Reserve Bank of India’s insolvency proceedings after it failed to fulfil debt obligations.

In May 2023, Reliance General Insurance collaborated with food delivery company Swiggy to provide tailored health insurance, and personal accident and mobile phone insurance cover for delivery partners.