Reliance Industries Sees Potential Boost After $10 Million Deal to Acquire Stake in Health Alliance Group

Mumbai, India - Shares of Reliance Industries, led by billionaire Mukesh Ambani, are likely to remain under scrutiny on Monday after announcing a deal to acquire a 45% stake in the US-based healthcare firm Health Alliance Group (HAGI) for $10 million.

The acquisition, which is expected to be completed within two weeks, will give Reliance Digital Health Limited (RDHL), the company's wholly-owned subsidiary, greater access to underserved communities and facilitate the development of a virtual diagnostic and care platform.

Health Alliance Group, incorporated in December 2023, specializes in designing technology-driven solutions for healthcare in the US, India, and other parts of the world. The deal is aimed at expanding RDHL's capabilities in the global healthcare space.

The move by Reliance Industries comes amid negative returns for its shares over the past year, with a 4.56% decline in the last 12 months and a 6.9% drop so far this calendar year. In the short term, the stock has also faced challenges, falling by 18.14% in the last six months and 2.84% in the previous month.

However, according to Trendlyne data, Reliance Industries is currently trading at the 31 mark on the Relative Strength Index (RSI), which falls within nearly an oversold zone.

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