RIL AGM is undoubtedly the most watched date in the corporate calendar as 3 million Reliance shareholders await Mukesh Ambani to talk about Jio, Aramco, Retail and the road ahead. So, what can one expect from India’s largest company at it’s 44th AGM on June 24?
Reliance: The Year That Was
India’s largest company displayed it’s business grit to turn debt-free even in a pandemic. Keeping to his promise Mukesh Ambani steered Reliance into a zero-debt company by raising ₹2.6 lakh crore ($36 billion); Reliance Retail raised Rs 47,265 crore for a 10.09%, while Jio Platforms garnered Rs 1.52 lakh crore from global investors including Google, Facebook and Intel. The stock of RIL has rallied 12.1 percent so far in 2021. In the last 12 months, it has climbed 34.4 percent.
All Eyes on Aramco Deal
Mukesh Ambani announced a possible stake sale of 20% in the oil-to-chemicals (O2C) business to Aramco but the deal remains delayed. Shareholders are expecting to hear details on the value unlocking as buzz increases that Aramco chief will get a seat on the RIL board
The Jio Connect, 5G Phone & JioBook
Its all about the tech connect as Asia’s richest man will look to sweep the market with a slew of announcements. Onlookers are keenly awaiting is Mukesh Ambani will finally launch the much talked about affordable 5G Android smartphone. During a virtual conference with select reporters from the Asia Pacific recently, Sundar Pichai mentioned that Google is working closely with the telecom giant to bring the promised "affordable" smartphone in India.
Reliance Jio has already started trials on it’s 5G “Made in India” network is likely to announce kickstarting 5G services which might begin in late 2021.
Tech watchers are also expecting the launch of the JioBook, the affordable laptop from the house of Reliance.
Reliance’s Rush For Retail
Analysts at Goldman Sachs believe retail business (including e-commerce) is set to be the next growth engine for Reliance. They expect Reliance’s core retail revenue to grow at a 36% CAGR over the next four years. JioMart is expected to launch new products like financial services, electronics to airline tickets which will put it in direct competition with upcoming Tata Superapp and other established players including PayTM, Amazon and Flipkart.
Bonus Booster?
Announcement over dividend declaration and bonus can also be expected in this AGM. Reliance likes to keep the market price of shares around ₹1,000 so the street anticipates it might get to see a 1:1 bonus announcement.
How to watch the Reliance AGM 2021 live
The annual general meeting of Reliance, whenever held physically in the last few years, marked the presence of at least 3,000 shareholders. In 2020, when it was held virtually, it witnessed 300,000 viewers across 42 countries and 468 cities, many of them using Reliance’s own JioMeet video conferencing platform.