Reliance Industries is holding its 46th AGM today
Mukesh Ambani-led Reliance Industries Limited (RIL) is going to hold its 46th annual general meeting today. The AGM is scheduled to begin at 2 PM and it will be live-streamed through several platforms, including YouTube. Investors are keeping a close eye on the AGM for any major announcement the company is going to make.
As Mukesh Ambani prepares to take centre stage at RIL AGM today, the question on everyone's mind is: What to expect?
Jio Financial Services: RIL had demerged its financial services operations and created a new entity. The shares of the newly demerged entity were allotted to shareholders of RIL and it got listed on the bourses last week. During the AGM, the company is expected to clear JFS plan and detail the markets it will target in the coming months. It has already entered a partnership with investment firm Blackrock to enter India's asset management space.
Reliance Retail, Jio IPO plans: In 2019, the company had announced during its AGM that it will list its telecom and retail businesses in the next five years. Investors are keeping a close eye on whether company's leadership will clarify the plan for listing of two of its prominent businesses which could lead to significant value unlocking.
Green Energy Plans: Earlier this month, Reliance Industries and Brookfield Asset Management signed a Memorandum of Understanding (MoU) to explore opportunities to build renewable energy and decarbonisation equipment in Australia. During its current AGM, the company could make more announcements of investment in green energy plans.
RIL shares opened in the green on both benchmark indexes today. However, the shares have been trading flat on both Sensex and Nifty. At 12:34 PM, the share was up 0.17 per cent at Rs 2,474.25 on BSE. On NSE, the share was up 0.18 per cent to reach Rs 2,472.85
The performance of the share has been subdued in the past one month, with the share trading 2.18 per cent below its value on July 28. After hitting the lower circuit for few days, JFS shares are trading 2.10 per cent above their previous closing price.
Commenting on the expectations from AGM, Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, "Market will be keenly watching for any indications on value unlocking in Reliance Retail and Telecom businesses. Also any announcements regarding the status of the mega green energy and battery projects also will be keenly watched."
The demerger of Jio Financial Services and its listing on the stock markets have reminded some of 2005 when Reliance had demerged four entities. These were Reliance Capital Ventures, Reliance Energy Ventures, Global Fuel Management Services and Reliance Communication Ventures. Following the move, the value of RIL scrip had surged by 40 per cent by the end of 2005.
Commenting on the potential of RIL, Narendra Solanki, Head of Equity Research at Anand Rathi Shares & Stock Brokers, said, “These moves to list individual businesses into separate entities unlocks value for shareholder and we have seen this happen not only in RIL but other companies as well where it has happened."
In a note, Nuvama Institutions Equities had said that if the markets have a deja vu moment, then the stock can have a 3-5 per cent upside this year.
The company had recently launched its low-cost hardware offerings. JioBook laptop's price was set at Rs 16,499 while JioBharat phone would be sold for Rs 999. During the current AGM, the company may make more announcements regarding the new products. Media reports suggested that the company may announce a partnership with Netflix during the AGM.
Reliance Industries Chairman Mukesh Ambani has started his speech at the 46th AGM. He introduced the board members of RIL to shareholders. He said all directors of the company are present at the meeting. Nita Ambani will step down from RIL board.
Mukesh Ambani began his address to shareholders with reference to PM Modi speech on August 15. He congratulated the country over Chandrayaan 3 success.
Ambani said that Reliance has been the forerunner in new India and invested over $150 billion in India in last 10 years, more than any other corporate group. "What's true for Reliance is true for other corporate firms," he said.
Mukesh Ambani detailed the performance of the group in his speech to shareholders. In employee growth, capital expenditure and other parameters, the company maintained its leading position in FY23, he said.
While speaking abut Jio's performance, Mukesh Ambani said that company's 5G rollout is the fastest in the country. He promised that 5G will reach across the country by end of 2023.
Mukesh Ambani said during his speech that Jio has been able to build its own equipment and technological capacity to roll out 5G. "We were one of the largest filer of patents," he said
Ambani said during his speech that the immense scale of JioFiber puts Reliance in the leading position. Through JioFiber, the company connects 15,000 premises everyday.
Mukesh Ambani announced the launch of Jio AirFiber during his speech
Mukesh Ambani handed over the stage to Akash Ambani to speak about Jio. The company launched Jio Smart Home Services. "Our technology will optimise Wifi coverage for customers," Akash Ambani said.
Mukesh Ambani expressed confidence in Jio's business in the coming years. He said that the service has good prospects in consumer and enterprises segment. "Jio promises AI to everyone, everywhere," he said.
Mukesh Ambani said that the JioCinema posted strong numbers in industry's key performing metrics.
Mukesh Ambani congratulated the leadership of Reliance Retail for strong performance in FY23. He said that Reliance Retail is attracting global attention. During his address, he also welcomed Qatar Investment Authority who recently invested in the retail business.
Mukesh Ambani talked about the newest group company, JFS. He said that JFS will help in ease of doing business. "JFS will democratise financial services," he said.
Blackrock CEO Larry Fink expressed confidence that the joint venture with JFS will serve India well. Blackrock will bring global expertise to India through partnership with Jio, he said.
Mukesh Ambani announced that JFS will enter insurance segment.
Mukesh Ambani said that Reliance will ensure green transition for its oil-to-chemical businesses.
Mukesh Ambani announced that the company will establish a battery giga factory by 2026 during his speech as the group plans transition to green energy.
On behalf of Reliance Foundation, Nita Ambani addressed the 46th AGM of Reliance Industries. "From healthcare to livelihood, we work in all states and over 56,000 villages across India," she said. She also talked about Nita Mukesh Ambani Cultural Centre (NMACC) which was opened earlier this year. "We have welcomed over 20 lakh visitors at NMACC," she added.
Bill Gates addressed Reliance AGM and said that the he is impressed by India's delivery of innovations. He said that he is optimistic about partnership with Reliance on several initiatives, including women empowerment and healthcare.
Reliance has ensured operational discipline due to which it has received AAA rating, says Mukesh Ambani.
Mukesh Ambani informed that RIL board approved the appointment of Akash, Isha and Anant Ambani as non-executive directors earlier today. They have earned their place, Ambani asserted in his speech
Nita Ambani has stepped down from RIL board but will continue to attend board meetings as permanent invitee, Mukesh Ambani said in his speech
RIL chairman Mukesh Ambani concluded his speech at the 46th AGM of the company. He thanked state and central government along with the shareholders.