Jio IPO, new-energy biz update: Here's what to expect from RIL's 47th AGM

RIL AGM 2024: Given RIL's historical performance and the significant developments in its various business segments, investors have high expectations from the 47th AGM

Reliance Industries (RIL) 47th AGM: The much-awaited annual general meeting (AGM) of Mukesh Ambani-owned Reliance Industries (RIL) is scheduled on Thursday, August 29, 2024, at 2 PM Indian Standard Time (IST). As per analysts, investors would focus on a plethora of announcements at the 47th RIL AGM.

Given the company's historical performance and the significant developments in its various business segments, investors are likely to have high expectations from the upcoming AGM, they said.

New Energy Business Update

To begin with, Vikas Sethi, managing director of Sethi Finmart, said investors will focus on a fleshed out roadmap related to the investments worth approximately Rs 75,000 crore committed during the last two AGMs for the renewable or green energy segment.

 

Updates on project timelines, partnerships, and progress towards sustainability goals, analysts said, could significantly impact the stock price.

Reliance Jio, Reliance Retail IPOs Update

That apart, the much-anticipated IPOs of Reliance Retail and Jio Platforms could be the key focal point of discussion. Any positive news regarding pricing, timelines, and investor interest could drive the stock price higher.

"I'm expecting one of the IPOs to happen before the end of this financial year," Sethi added.

On similar lines, G Chokkalingam, founder and head of research at Equinomics, said that there was a possibility of unlocking value from Reliance Retail and Telecom at the 47th RIL AGM on Thursday.

Deleveraging of RIL balance sheet

Furthermore, any plans to deleverage the balance sheet of Reliance Industries by potential stake sale in the oil-to-chemical business or monetising a part of it will also be eyed.

A strong financial performance, including debt reduction and efficient capital allocation, in general, could bolster investor confidence and lead to a rise in the share price, analysts said.

5G Expansion and Monetisation

According to Sonam Srivastava, founder and fund manager at Wright Research, Reliance Jio's 5G rollout has been gaining momentum. Updates on subscriber growth, revenue generation strategies, and plans for international expansion could enhance the stock's appeal, she said.

How will the market react to RIL's AGM outcome?

Analysts believe that if there is any significant announcement in the AGM, the market will react positively.

"If RIL declares a timeline for the demerger and listing of its retail or telecom business, RIL share price could experience a good rally," said Sethi.

Sethi added that if Reliance Industries' telecom business is listed as a new-age business, it will be valued at a much higher valuation than its oil-to-chemical business.

"Based on Reliance's historical performance and the current market sentiment, there is a strong possibility of a positive stock price movement following the 47th AGM. However, it's important to note that market conditions, global economic factors, and geopolitical events can also influence the stock price," Srivastava of Wright Research added.

Agendas of RIL's 47th AGM as per its notice

- The board will consider the audited financial statement of the company for the financial year ended March 31, 2024 (FY24).

- It will consider a dividend at Rs 10 per equity share of Rs 10 each fully paid-up of the company.

- It will appoint Hital R. Meswani and P.M.S. Prasad as directors.

-I t will ratify the remuneration of Cost Auditors.

- It will approve Material Related Party Transactions of the company.