Analysts are expecting to see some major announcements like the 5G rollout timeline, launch of its 5G Jio Phone 5G, conglomerate Chairman Mukesh Ambani’s succession plans, IPO of some key businesses, etc.
Dipan Mehta, Director at Elixir Equities, said there is always excitement around
AGM, and one should expect some announcements, even as there may not be the fireworks seen in earlier AGMs.
“Some amount of update on roadmaps, succession planning and unlocking of the value in the subsidiaries… from a minority shareholder point of view, all I can say is that the breaking up of Reliance Industries (RIL) would be very positive for minority shareholders where we can get shares of Reliance Jio as well as Retail,” Mehta said.
5 things to track in Reliance Industries’ 45th AGM:
1. 5G Rollout
Earlier this month, Reliance Jio Infocomm emerged as the top spender in India’s 5G spectrum auction. Reliance Industries (RIL) telecom arm cornered nearly half of all the airwaves sold with over an $11 billion bid. In this AGM, details such as a nationwide rollout date, tariff plans for 5G services as well as where the demand lies for the service will be crucial for Reliance Jio to reveal.
2. 5G enabled JioPhone
Several announcements are expected at the Reliance AGM – including the launch of Jio’s much-awaited 5G enabled JioPhone. With the announcement of Jio 5G, investors can also expect the launch of an affordable 5G-enabled smartphone. The successor to JioPhone Next will be a key tool to help kickstart 5G adoption in India
Earlier in the year, Ambani resigned as the director of Reliance Jio Infocomm, paving the way for his elder son Akash Ambani to become the chairman of the telecom company. The senior Ambani’s other two children – daughter Isha and son Anant – are already holding various directors in the group’s unlisted firms and are becoming more visible in their leadership.
As rumours about Ambani’s health continue to swirl, investors will be looking to take more concrete steps in a leadership change with Isha, Akash, Anant and possibly his wife Nita.
4. Green Energy
Mukesh Ambani is taking Reliance towards green energy. The company will invest Rs 5.95 lakh crore on renewable energy over the next 10-15 years. This investment will help in setting up a 100 GW renewable energy power plant and the development of a green hydrogen ecosystem
Investors will be looking for updates about last year’s announced plans to build four giga-factories to make solar modules, hydrogen electrolysers, fuel cells and storage batteries. Ambani has also been on a tear acquiring small green energy firms globally for expertise and technology. There are also plans to be among the world’s top blue hydrogen manufacturers.
RIL is unlikely to announce the initial public offerings (IPOs) of Jio and Retail in this year’s annual general meeting, market watchers say.
Both companies are market leaders in their respective sectors with a formidable lead over their rivals. Their listings — or even spinoffs — could propel Ambani’s net worth. Announcement of timelines may help RIL stock get its mojo back.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)