In a strategic move to bolster its healthcare portfolio, Reliance Industries, led by Mukesh Ambani, has acquired oncology-focused platform Karkinos Healthcare for ₹375 crore. This acquisition, completed through Reliance Strategic Business Ventures Ltd (RSBVL), is a significant step towards expanding the company’s reach in cancer detection, diagnosis, and treatment.
Key Details of the Acquisition
Deal Structure: Reliance’s subsidiary RSBVL acquired 10 million equity shares and 36.5 million optionally fully convertible debentures of Karkinos for ₹375 crore, with the transaction entirely in cash.
Business Focus: Karkinos, founded in 2020, specializes in providing innovative technology-driven solutions for early cancer detection and management. It has partnered with around 60 hospitals and is setting up a 150-bed cancer hospital in Imphal, Manipur.
Financials and Operations
Turnover: Karkinos reported a turnover of ₹22 crore in FY 2022-23, with a focus on offering affordable cancer treatments.
Previous Investors: The company’s previous investors included major names like Tata Sons’ subsidiary Ewart Investments, Mayo Clinic, and Reliance Digital Health.
Acquisition Process
Regulatory Approval: The acquisition followed the approval of Karkinos’ resolution plan under the Insolvency and Bankruptcy Code (IBC) by the National Company Law Tribunal (NCLT), Mumbai Bench, ensuring no additional regulatory hurdles.
Future Plans and Synergies
Expansion of Healthcare Portfolio: Reliance aims to enhance its healthcare services, particularly oncology, through this acquisition, leveraging Karkinos’ existing infrastructure and partnerships with hospitals.
Summary of the news
| Why in News | Key Points |
|---|---|
| Reliance Industries acquires Karkinos Healthcare for ₹375 crore. | – Acquirer: Reliance Strategic Business Ventures Ltd (RSBVL) |
| – Acquisition Amount: ₹375 crore (all-cash deal) | |
| – Karkinos Healthcare: Focus on technology-driven oncology services | |
| – Turnover of Karkinos (2022-23): ₹22 crore | |
| – Acquisition Details: 10 million equity shares and 36.5 million debentures | |
| – NCLT Approval: Approved under Corporate Insolvency Resolution Process (CIRP) | |
| Company Information | – Karkinos Founded: July 24, 2020 |
| – Business Area: Early cancer detection, diagnosis, and treatment | |
| – Investors: Ewart Investments (Tata Sons), Mayo Clinic, Reliance Digital Health | |
| Future Plans | – Cancer Hospital in Imphal: 150-bed multispecialty hospital |
| – Partnerships: 60 hospitals by Dec 2023 | |
| Key Leaders & Figures | – Mukesh Ambani: Chairman, Reliance Industries |
| – Sundar Raman: Director, Reliance Foundation Youth Sports |
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