On Friday, Reliance Industries Limited (RIL) declared that it has acquired stakes of Strand Life Sciences at ₹393 crores. In a regulatory filing, the company said that, “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 ₹393 crores only.”
By fiscal year 2023, the company has planned to go a step ahead with an investment of approximately ₹160 crore. The overall investment by RIL will account for 80.3% of equity share capital in Strand on nullified and diluted grounds.
Strand arrived in India on 6 October, 2000. The official statement read: 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.
Strand’s turnover ratio remained considerably higher throughout successive fiscal years: ₹88.70 crore, ₹109.84 crore and ₹96.60 crore for the FY 2021, FY 2020 and FY 2019 respectively. It witnessed a Net Profit (Loss) of ₹8.48 crore, ₹(25.04) crore and ₹(21.66) crore in the FY 2021, FY 2020 and FY 2019. RIL averred the investment is part of group’s digital health initiatives, to foster affordable access to world class technology and innovation led healthcare ecosystem in India.
The announced investment plan, will not require any official nod from governmental or regulatory organisations for its execution. It also arrives with a quick note that the investment is not within the periphery of related party transactions, therefore none of its RIL’s promoter / promoter group / group companies have any interest attached to this exchange.