On December 30, 2024, Reliance Industries Limited (RIL) announced the acquisition of Karkinos Healthcare, a technology-driven oncology platform, for Rs 375 crore. This acquisition was carried out through RIL’s wholly-owned subsidiary, Reliance Strategic Business Ventures (RSBVL), in an all-cash deal.
According to the announcement, on December 27, 2024, RSBVL acquired 10 million equity shares of Rs 10 each and 365 million optionally fully convertible debentures (OFCDs) of Rs 10 each from Karkinos, for a total of Rs 375 crore. The debentures can later be converted into equity shares, giving RIL a pathway to increase its stake in Karkinos over time. Additionally, Karkinos has canceled 30,075 equity shares previously held by other shareholders, making it a step-down wholly-owned subsidiary of RIL after the completion of the deal.
Karkinos Healthcare, founded in 2020, focuses on providing innovative, technology-driven solutions for the early detection, diagnosis, and treatment of cancer. The company aims to make cancer care more accessible and affordable by offering services at rates significantly lower than the prevailing industry costs, while still maintaining profitability. Karkinos partners with hospitals to provide a range of oncology services, including cancer testing, radiation therapy, and other treatment options.
Before this acquisition, Karkinos had attracted investments from prominent entities such as Ewart Investments Limited (a subsidiary of Tata Sons), Reliance Digital Health Ltd (another Reliance subsidiary), the Mayo Clinic (USA), and notable individuals like Sundar Raman (Director at Reliance Foundation Youth Sports and former COO of IPL) and Ravi Kant (former MD of Tata Motors).
With this acquisition, RIL is strengthening its presence in the healthcare and oncology sectors, marking a strategic move into cancer care. This aligns with RIL’s broader goals of expanding its healthcare portfolio, particularly in areas that are poised for growth, such as technology-driven healthcare solutions. The company’s acquisition of Karkinos is expected to enhance RIL’s capabilities in offering advanced cancer treatments and expand its service offerings in the healthcare sector.
As of December 30, 2024, RIL’s stock traded at Rs 1,210.70, showing a 0.85% decline in value, but the acquisition is likely to draw attention to RIL’s growing focus on healthcare, with potential long-term benefits as the oncology market continues to expand globally.
SOURCE :
ECONOMIC TIMES
