India's Biggest Conglomerate Makes Bold Move with USD10,000,000 Stake in Healthcare
India’s largest conglomerate strengthens its healthcare presence with a USD10 million stake acquisition in Healthcare sector.
Reliance Digital Health Limited (RDHL), a wholly owned subsidiary of Reliance Industries Limited, has acquired a 45 per cent equity stake in Health Alliance Group Inc. for USD 10 million. The acquisition was finalized on December 31, 2024, with the company receiving intimation at 9:56 PM IST. This move aligns with Reliance’s strategy to expand its footprint in the healthcare sector, leveraging digital innovations to drive growth.
Consolidated Financial Performance
For Q2 FY25, Reliance Industries reported a mixed financial performance. Revenue increased marginally by 0.8 per cent year-on-year (YoY) to Rs 2,58,027 crores. However, profitability took a slight hit, with EBITDA declining by 2 per cent YoY to Rs 43,934 crores, and PAT dropping by 2.8 per cent YoY to Rs 19,323 crores. This reflects ongoing challenges in certain business segments.
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About Reliance Industries
Founded by Dhirubhai Ambani, Reliance Industries is one of India’s largest conglomerates. It is currently led by Mukesh Ambani, with the Ambani family holding a 50 per cent stake in the company. The group operates across diverse sectors, including energy, retail, telecom, and digital services, maintaining a dominant presence in the Indian economy.
Stock Performance
Reliance Industries' stock has underperformed in 2024, delivering a return of -6.23 per cent on a year-to-date (YTD) and one-year basis. The stock lagged behind major indices like NIFTY and Sensex, reflecting investor concerns amid mixed financial results.
Outlook
Despite recent stock underperformance, Reliance continues to focus on strategic investments, such as its stake in Health Alliance Group, to drive growth in emerging sectors like digital health. While short-term challenges persist, the company’s diversification strategy and leadership position make it a key player in shaping India’s economic future.
Disclaimer: The article is for informational purposes only and not investment advice.