Reliance Industries Hits All Time High On Acquiring Stake In Strand Life Sciences
Reliance Industries share price hits ATH, its market capitalisation crossed ₹ 16 lakh crore at the day’s highest level, data from BSE showed. Reliance Industries shares have so far this year jumped 25 per cent, outperforming the Sensex which has risen 22.54 per cent.
Reliance Industries’ stock soared as much as 3.83 percent to a new high of 2,479.85 after the firm announced after market hours on Friday that it had purchased a stake in Strand Life Sciences. Reliance Industries’ subsidiary Reliance Strategic Business Ventures paid 393 crore for 2.28 crore shares in Strand Life Sciences.
“RSBVL, a wholly-owned subsidiary of Reliance Industries Limited (RIL), has purchased 2.28 crore equity shares of Strand Life Sciences Private Limited for a cash payment of Rs 393 crore only,” the company stated.
By March 2023, a further investment of up to Rs 160 crore is scheduled to be completed.
“On a fully diluted basis, the whole investment will translate into roughly 80.3 percent of Strand’s equity share capital,” it added.
Strand was founded on October 6, 2000 in India. It is a genetic testing pioneer in India, offering bioinformatics software and clinical research solutions to healthcare providers such as physicians, hospitals, medical device makers, and pharmaceutical firms.
The addition of Strand Life to RIL’s digital health ecosystem ambitions adds another layer; RIL has accomplished $4 billion in acquisitions in the previous four years, according to Morgan Stanley, which has an Overweight call on the stock with a target price of Rs 2,269 per share.
“In FY 2021, FY 2020, and FY 2019, Strand’s revenue was 88.70 crore, 109.84 crore, and 96.60 crore, with a net profit (loss) of 8.48 crore, (25.04) crore, and (21.66) crore, respectively. The investment is part of the group’s digital health ambitions, which aim to provide India with affordable access to world-class technology and an innovation-driven healthcare environment “According to Reliance Industries.