Billionaire Mukesh Ambani told shareholders of Reliance Industries Ltd that he will share an update on the planned initial public offer (IPO) of Reliance Retail and Reliance Jio in the annual general meeting of the company next year.
His statements come at a time when shareholders, investors, and the street was abuzz that the conglomerate may make announcements on the IPOs during the conglomerate’s forty-fifth Annual General Meeting (AGM) on August 29.Responding to shareholders questions, Ambani said, “I will take up your inputs with our board of directors on the question on IPO for Jio and Retail. The principles on timing and valuation of IPOs remain unchanged. I have outlined the plans for both businesses. Jioo is embarking on an aggressive launch of our 5g service and retail is on a path of exponential growth.”
“I will update you on the IPO in my speech next year,” he said.
The AGM of RIL is much awaited by shareholders and the street alike as the conglomerate has been making strategic announcements at the event. Last year, Ambani had made announcements about mega investments in green energy, and there were speculations that he may announce a timeline for potential IPOs of Reliance Jio and Reliance Retail.
“The next generation of leaders have assumed responsibility for growth and execution of our ambitious plans with Reliance being the largest shareholder in both Jio and Retail. All of you as shareholders will benefit directly from the growth of these two companies,” Ambani told shareholders.
Earlier in the day, Ambani said in his speech to the shareholders that the next generation leaders are already taking over the reins across businesses and referred to his children– Akash Ambani, Isha Ambani and Anant Ambani– as “first among equals” in a young team of leaders.
Akash Ambani and Isha Ambani have taken leadership roles in Jio and Retail, respectively. Their youngest sibling Anant Ambani has joined the new energy business.
“The clear succession plan for each business of Jio, retail and new energy is also important from building leadership team for sustained growth (RIL target to double its value by end of 2027). We maintain our ‘Buy’ rating on RIL,” Abhijeet Bora, assistant vice president – research, Sharekhan by BNP Paribas.
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