Reliance Industries Ltd on Friday said its subsidiary has acquired a majority stake in genomic testing from Strand Life Sciences Pvt Ltd for Rs 393 crore. The acquisition by Reliance Strategic Business Ventures Ltd (RSBVL) is part of Reliance's digital health initiatives, the firm said in a stock exchange filing.
"RSBVL, a wholly-owned subsidiary of Reliance Industries Limited (RIL), has acquired 2.28 crore equity shares of Rs 10 each of Strand Life Sciences Private Limited for a cash consideration of Rs 393 crore only," it said. A further investment of up to Rs 160 crore is expected to be completed by March 2023.
"The total investment will translate into about 80.3 per cent of equity share capital in Strand on a fully diluted basis," it said. Strand was incorporated in India on October 6, 2000. It 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.
Strand's turnover was Rs 88.70 crore, Rs 109.84 crore and Rs 96.60 crore in FY2021, FY2020 and FY 2019, respectively. It reported a net profit of Rs 8.48 crore in FY2021 but had a loss of Rs 25.04 crore in the prior fiscal year and Rs 21.66 crore in FY2019. "The aforesaid investment is part of group's digital health initiatives, to foster affordable access to world-class technology and innovation-led healthcare ecosystem in India," Reliance said adding no governmental or regulatory approvals were required for the said investment.
The investment, it said, does not fall within related party transactions and none of RIL's promoter/promoter group/group companies has any interest in the transaction.
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