India’s most-valued private company Reliance Industries Limited (RIL) will hold its 43rd Annual General Meeting on Wednesday. The oil-telecom-to-retail giant recently crossed Rs 12 lakh crore in market capitalisation, becoming the first listed Indian entity to achieve the feat.
This will be Reliance Industries' first virtual AGM amid the COVID-19 crisis. Thousands of shareholders across the countries are expected to join the meeting.
"Given the recent records, RIL's AGM improves the mood of its stock price and given the huge weight in the index, markets too are expected to remain on the higher side unless negative global cues spoil the party. This time it is expected that the AGM would garner maximum viewership given the slew of deals cracked for Jio Platforms," Jimeet Modi, Founder & CEO at SAMCO Securities & StockNote told Moneycontrol.
The Mukesh Ambani-owned company, being the only listed entity having a market cap of more than Rs 12 lakh crore, has successfully achieved its target - set in the last AGM - to become a net debt free well before its schedule of March 31, 2021, by selling more than 25 per cent stake in Jio Platforms to global marquee investors, a rights issue of Rs 53,124 crore and a stake sale to BP in the petro-retail joint venture.
Here are five things that could be on RIL's agenda according to experts:
- Update on Oil-to-Chemical division (O2C) deal with Saudi Aramco;
- Overseas listing of Jio Platforms;
- Value unlocking plans in fibre & tower infrastructure via InvITs funds;
- Roadmap plan of Reliance Retail and JioMart;
- Revival of petrochemicals business and oil-to-chemicals capital expenditure target.
"After successfully fulfilling the promise of becoming zero net debt company earlier-than-expected, Reliance Industries may now shift its focus on growing Retail business (JioMart) and overseas listing of Jio Platforms," Prashanth Tapse, AVP Research at Mehta Equities told Network18's Moneycontrol.
"Investors also expect finer announcements regarding its advanced talks to buy out stakes in Kishore Biyani's Future Group. If the same is announced, it would help RIL to expand its reach in the retail space across categories like fashion, general merchandise and groceries thus targeting to become India's number one Retail Company. The AGM will also focus on drafting roadmap of Reliance Retail – JioMart future as JioMart is at the heart of Reliance Industries' retail ambitions," he said.
On July 2, Reliance clarified that they are unable to comment on media speculation and rumours after The Economic Times reported, "Reliance Industries nears deal to acquire retail businesses of Future Group."
Apart from that, Prashanth Tapse feels Reliance would keep its focus on asset monetisation to the proposed stake sale in its oil-to-chemical division (O2C) with Aramco which is expected to be the bigger trigger on cards and it will also look to announce value unlocking plans in fibre and tower infrastructure via InvITs funds.
Sumit Bilgaiyan, Founder of Equity99 said key aspects one should look out for in the AGM are: a) expected revival in the petrochemicals business, b) oil-to-chemicals (O2C) capital expenditure target, c) details and update about the Aramco deal and d) outlook on JioMart.
Despite lockdown in several countries to control the spread of COVID-19, Jio Platforms, the wholly-owned subsidiary of Reliance Industries, has raised Rs 1.18 lakh crore by selling over 25 percent stake to global marquee investors including Facebook, General Atlantic, KKR, Saudi's Public Investment Fund etc.