Reliance Industries Limited (RIL) on Friday announced that it has acquired a stake in Strand Life Science for Rs 393 crores. “Reliance Strategic Business Ventures Limited, a wholly owned subsidiary of Reliance Industries Limited, has acquired 2,28,42,654 equity shares of Rs.10 each of Strand Life Sciences Private Limited (Strand) for a cash consideration of Rs 393 crores only,” is said in a filing.
A further investment of up to 160 crore only,” it said in a filing. A further investment of up to Rs 160 crore is expected to be completed by March, 2023. The total investment will translate into 80.3% of equity share capital in Strand on a fully diluted basis.
Strand was incorporated in India on 6 October, 2000. Strand is a pioneer of genomic testing in India with bioinformatics software and clinical research solutions to healthcare providers including clinicians, hospitals, medical devices manufacturers and pharmaceutical companies, the statement said.
Strand’s turnover was Rs 88.70 crore, Rs 109.84 crore and Rs 96.60 crore, and Net Profit (Loss) of Rs 8.48 crore, Rs 25.04 crore, and Rs 21.66 crore in FY 2021, FY 2020 and FY 2019 respectively.
RIL said the investment is part of the group’s digital health initiatives, to foster affordable access to world class technology and innovation led healthcare ecosystem in India.
No governmental or regulatory approvals were required for the said investment. The investment does not fall within related party transactions and none of RIL’s promoter/ promoter group/ group companies have any interest in the transaction.