Reliance Industries Acquires Oncology-Focused Karkinos Healthcare for ₹375 Crore
NEW DELHI (The Uttam Hindu): Mukesh Ambani's Reliance Industries has acquired the oncology-focused healthcare platform Karkinos Healthcare for ₹375 crore, according to a statement released by the company on Saturday. The acquisition was completed through Reliance Strategic Business Ventures Ltd (RSBVL) a wholly-owned subsidiary of Reliance Industries via the allotment of equity shares and optionally fully convertible debentures.
Karkinos, incorporated on July 24, 2020 specializes in technology-driven solutions for the early detection, diagnosis and management of cancer. In the 2022-23 fiscal year the company reported a turnover of approximately ₹22 crore. According to the stock exchange filing RSBVL subscribed to 1 crore equity shares worth ₹10 crore and 36.5 crore optionally fully convertible debentures worth ₹365 crore amounting to ₹375 crore in total. The acquisition follows the cancellation of 30,075 equity shares held by Karkinos' previous shareholders as part of a resolution plan.
About Karkinos
Karkinos focuses on delivering affordable and effective cancer care through partnerships with hospitals offering services like testing and radiation therapy. By December 2023, the company had partnered with approximately 60 hospitals and is also developing a 150-bed multispecialty cancer hospital in Imphal, Manipur. Its revenue streams include Advanced Cancer Care Diagnostics and Research (ACCDR) the Distributed Cancer Care Network (DCCN) corporate tie-ups for early cancer diagnosis and cancer care hospitals.
Prominent investors in Karkinos before the acquisition included Ewart Investments (a Tata Sons subsidiary) Reliance Digital Health Mayo Clinic (US), Sundar Raman (Director at Reliance Foundation Youth Sports) and Ravi Kant (ex-MD of Tata Motors).
Significance of the Acquisition
Reliance stated that the acquisition will enhance its healthcare services portfolio by expanding its presence in oncology and cancer care. Karkinos’ vision aligns with providing comprehensive cancer care services at significantly lower costs while maintaining profitability.
The acquisition was made under the resolution plan approved by the National Company Law Tribunal (NCLT) Mumbai Bench, as part of Karkinos' Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016. No additional regulatory approvals were required for the transaction. Earlier, on December 10 Reliance announced that the NCLT had approved its resolution plan for Karkinos enabling this strategic acquisition to proceed.
