Reliance Industries ventures into Helium sector with $12 million stake in Wavetech Helium Inc

Wavetech Helium Inc.(WHI) is a US-based gas exploration and production company.

The $12 million acquisition is part of the company’s strategy to diversify into the exploration and production business with a focus on low-carbon solutions, Reliance Industries said.

"Reliance Finance and Investments USA LLC, a step-down wholly owned subsidiary of the company, has on November 27, 2024, entered into a stock purchase agreement with Wavetech Helium Inc (WHI) and subscribed to a 21% stake of WHI for an aggregate consideration of $12 million," the statement read.

About Wavetech Helium Inc.

Incorporated on July 2, 2024, in the US, WHI began its commercial operations in 2024. The company is involved in “the acquisition, exploration and development of properties to produce helium gas from underground reservoirs.”

Helium is a critical element in various areas including scientific research, medical appliances, aerospace and aeronautics, fibre optics and electronics.

Helium is used in medical applications, scientific research, aerospace and aeronautics, electronics, and fibre optics. Given the anticipated growth in AI and data centres, the demand for helium in semiconductor manufacturing is expected to rise.

“The investment is not a related party transaction and none of the Company’s promoter or promoter group or other group companies have any interest in the above transaction,” the filing said.

Reliance added that no governmental or regulatory approvals were required for the $12 million transaction.

Reliance Industries closed in the red at ₹1,272.75, down by 1.58% on the NSE on Thursday.

As of November 28, the company has a total market capitalisation of ₹17.22 lakh crore as per the bourse.

The Company said that it received an imitation in regards to the investment at 12:16 am (IST) on Thursday.