Reliance Industries Buys Oncology Platform Karkinos Healthcare For Rs.375 Crore
Billionaire Mukesh Ambani-headed Reliance Industries has finally taken the tech-driven, oncology-based healthcare platform, Karkinos Healthcare, through an all-cash deal worth Rs.375 crore. A report mentioned that the sale concluded by Reliance Strategic Business Ventures Ltd., an entirely owned subsidiary of the company, includes allotting 10 million equity shares and 365 million optionally fully convertible debentures.
Karkinos is an India-based company that was established in July 2020 and is involved in the early detection, diagnosis, and management of cancer through innovative technology-driven solutions. Karkinos had a turnover of Rs.22 crore for the financial year 2022-23. As per the terms of the agreement, Karkinos issued 10 million equity shares of Rs.10 each aggregating to Rs.10 crore and 365 million debentures worth Rs.365 crore.
It was a takeover under the Corporate Insolvency Resolution Process of the Insolvency and Bankruptcy Code, 2016. The acquisition was undertaken following the resolution plan that had been approved by the NCLT, Mumbai Bench. No further government or regulatory approvals were required for this deal.
Karkinos Healthcare, which has earlier seen investments from the likes of Tata Sons’ subsidiary Ewart Investments Limited, Mayo Clinic (USA) and Reliance Digital Health Ltd, among others, offers end-to-end cancer care solutions at a fraction of the prevailing rates. The company has partnered with nearly 60 hospitals and expanded its footprint in the oncology space.
The company has further made tremendous efforts in creating cancer care infrastructure. In Imphal, Manipur, the company will have a 150-bed multispecialty cancer hospital. The business model for Karkinos includes services such as Advanced Cancer Care Diagnostics and Research and Distributed Cancer Care Network, along with partnership collaborations with firms to bring the early detection of cancer in place.
This is one part of Reliance’s push towards expansion in health services as well as consolidation of its position in this increasingly expanding healthcare market. The deal supports the larger business objective of diversification for Reliance in terms of entering the healthcare space, which will be technology-enabled and accessible to cancer care.
This acquisition will be an important move by Reliance to improve its healthcare offerings and leverage the expertise of Karkinos in cancer care.
