Reliance Industries Limited, through its wholly-owned subsidiary Reliance Strategic Business Ventures Limited (RSBVL), has committed to infusing ₹202.16 crore to settle the debts of Karkinos Healthcare, a technology-driven oncology platform led by former Tata Trusts official R. Venkataraman. This move comes as part of Karkinos Healthcare’s ongoing insolvency proceedings.
The development follows the approval of Reliance’s resolution plan by the National Company Law Tribunal (NCLT) on December 9 under the Corporate Insolvency Resolution Process (CIRP). Karkinos Healthcare was admitted into insolvency in May following a petition filed by one of its creditors, Labindia Instruments Pvt Ltd. Reliance Strategic Business Ventures emerged as the sole successful bidder for the resolution, with NCLT’s approval to implement the plan.
In addition to settling Karkinos’ debts, Reliance has pledged an additional ₹150 crore to support the company’s operational revival and meet its working capital needs. The resolution plan, approved by the Committee of Creditors (CoC), outlines specific payouts to creditors. Secured creditors will receive ₹37.59 crore, unsecured creditors will be allocated ₹65.12 crore, and operational creditors will be paid ₹99.45 crore.
The implementation of the resolution plan is expected by February 2025. This will include amendments to Karkinos Healthcare’s Memorandum and Articles of Association (MoA and AoA), which will need to be filed with the Registrar of Companies. Reliance’s connection with Karkinos Healthcare began in December 2021 when it acquired a minority stake in the company through its subsidiary Reliance Digital Health Limited.
Founded in 2020, Karkinos Healthcare focuses on the early detection and diagnosis of cancer. The company operates a distributed cancer care network and collaborates with hospitals and healthcare institutions to improve access to affordable cancer care.
Karkinos has established partnerships with leading oncology institutions, including Tata Memorial Hospital, Mayo Clinic, and various Indian Institutes of Technology (IITs). The company has also teamed up with Rakuten Medical for clinical trials. As of December 2023, Karkinos had partnered with around 60 hospitals, expanding access to oncology services such as testing and radiation therapy.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
