Reliance Industries arm acquires 2.28 crore equity shares of Strand Life Sciences Pvt Ltd

Reliance Strategic Business Ventures Limited (RSBVL), which is a wholly-owned subsidiary of Reliance Industries Limited (RIL) has acquired 2,28,42,654 equity shares of Rs 10 each of Strand Life Sciences Private Limited for a cash consideration of Rs 393 crore.

A further investment of up to Rs 160 crore is expected to be completed by March 2023, RIL said in a regulatory filing and added that the total investment will translate into 80.3 percent of equity share capital in Strand on a fully diluted basis.

According to RIL, this investment will be a part of the group’s digital healthcare initiatives, “to foster affordable access to world-class technology and innovation-led healthcare ecosystem in India”.

Strand, which 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, posted a 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.

Notably, RSBVL, had in August 2021, invested Rs 20 crore in Neolync Solutions Private Limited. Another Rs 40 crore worth of investment is expected to be completed by March 2023 following the completion of agreed milestones.

The investment is part of RIL’s overall 5G initiatives and commitment to the Government of India’s ‘Made in India’ initiatives for fostering indigenous manufacturing, especially in next-gen 5G technologies.