Mukesh Ambani made a big bet, acquired this company for 375 crores, know in which business his dominance will increase
Billionaire businessman Mukesh Ambani has made a big bet by acquiring technology-based healthcare platform Karkinos for Rs 375 crore. Reliance Industries said that its wholly-owned subsidiary Reliance Strategic Business Ventures (RSBVL) has completed the acquisition of Karkinos Healthcare Private Limited with the allocation of the required shares. This acquisition will help the Reliance Group to expand its foothold in the fast-growing healthcare business in India.
What does Karkinos do?
Karkinos was formed in India on July 24, 2020, and the company provides technology-based solutions for early detection and treatment of cancer. Its previous major investors included Evart 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 Ravi Kant (former MD of Tata Motors). The company offers services related to early detection and effective treatment of cancer, which are priced much lower than the current rates. Despite this, the company is making good profits. The company has partnered with about 60 hospitals by December 2023.
Deal done at Rs 10 per share
RIL subsidiary Reliance Strategic Business Ventures has bought 1 crore shares in cash at Rs 10 per share, worth a total of Rs 10 crore. In addition, Karkinos has also acquired 36.50 crore optionally fully convertible debentures of Karkinos at a price of Rs 10 per share. The total value of these shares is Rs 365 crore. As part of this acquisition, Karkinos has cancelled the existing outstanding 30,075 equity shares held by the erstwhile shareholders of the company. After the allotment of equity shares to RSBVL and cancellation of the above-mentioned existing outstanding equity shares, Karkinos has become a wholly-owned subsidiary of RIL. Karkinos recorded a turnover of Rs 21.911 crore for FY 2023, up from Rs 0.918 crore in FY 22 and Rs 0.004 crore in FY 21, respectively.
