Reliance has Rs. Acquired Karkinos Healthcare for Rs 375 crore

Billionaire Mukesh Ambani’s Reliance Industries has acquired technology-driven and oncology-focused healthcare platform Karkinos for Rs 375 crore, the company said on Saturday. Reliance Strategic Business Ventures (RSBVL), a wholly-owned subsidiary of Mumbai-listed India’s most valuable company, has completed the acquisition of Karkinos Healthcare Pvt Ltd with the requisite share allotment, the company said in a stock exchange filing.

Karkinos was incorporated in India on July 24, 2020 and is in the business of providing technology based innovative solutions for early detection, diagnosis and management of cancer. Its turnover in the financial year 2022-23 was around Rs 22 crore.

“Reliance Strategic Business Ventures Limited has subscribed and allotted 1 crore equity shares of Rs 10 each for a total consideration of Rs 10 crore and 36.5 crore optional fully convertible debentures on December 27, 2024, for cash. 365 crore from Karkinos,” according to the filing.

According to the approved resolution plan, the existing outstanding 30,075 equity shares held by the company’s previous shareholders have been cancelled, Karkinos said.

However, he did not give details.

Its previous leading investors include Evert Investments Limited (a 100 percent subsidiary of Tata Sons), Reliance Digital Health Limited (a subsidiary of Reliance Industries), Mayo Clinic (US), Sundar Raman (Director of Reliance Foundation Youth Sports and former COO of India). Premier League since 2008), and Ravi Kant (former MD of Tata Motors).

The company focuses on providing end-to-end services related to early detection and effective treatment of cancer at significantly lower rates than prevailing rates, while still generating healthy profitability. To meet this vision, Karkinos began partnering with hospitals to provide oncology services (testing, radiation therapy, etc.).

The company has partnered with around 60 hospitals till December 2023. It has established a 150-bed multispecialty cancer hospital at Imphal, Manipur through a subsidiary. Further, its source of revenue is said to be through Advanced Cancer Care Diagnostics and Research (ACCDR), Distributed Cancer Care Network (DCCN), tie-ups with corporates for early detection of cancer and cancer care hospitals.

“The acquisition of Karkinos will help expand the health services business portfolio of the Reliance group,” the filing said.

The resolution plan for Karkinos was approved by the National Company Law Tribunal (NCLT), Mumbai bench, and no additional government or regulatory approvals are required for the transaction, it added.

Earlier, on December 10, Reliance had announced that the NCLT had approved the resolution plan submitted by RSBVL for Karkinos under the corporate insolvency resolution process of the Insolvency and Bankruptcy Code, 2016.