Reliance Industries (RIL) share price rose in early trade on August 19 after the company's retail arm acquired majority stake in an online pharmacy platform, Netmeds.
The company announced that its subsidiary Reliance Retail Ventures (RRVL) has acquired a majority equity stake in Vitalic Health (Vitalic) and its subsidiaries for a cash consideration of approximately Rs 620 crore, as per the release.
This investment represents 60% holding in the equity share capital of Vitalic and 100% direct equity ownership of its subsidiaries, viz: Tresara Health, Netmeds Market Place and Dadha Pharma Distribution, it added.
RRVL will further acquire equity stake in Vitalic, through a mix of secondary purchase and primary investment, for at least 80% stake by April 2024, with an option to increase to 100% ownership.
Also Read - RIL buys Netmeds, sets up hot e-pharmacy contest with Amazon
There are no governmental or regulatory approvals 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.
“This investment is aligned with our commitment to provide digital access for everyone in India. The addition of Netmeds enhances Reliance Retail’s ability to provide good quality and affordable health care products and services, and also broadens its digital commerce proposition to include most daily essential needs of consumers," said Isha Ambani, Director, RRVL.
At 09:19 hrs Reliance Industries was quoting at Rs 2,143.85, up Rs 25.10, or 1.18 percent on the BSE.Disclaimer: Reliance Industries (RIL), which also controls Jio Platforms, is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments which publishes Moneycontrol.