Jio, retail IPOs to new energy updates: 5 key things to watch out for at RIL AGM

Reliance (RIL) shares have seen a significant rally in the three months after eight out of the last 12 annual general meetings (AGMs) since 2013.

Reliance Industries Ltd’s 47th annual general meeting on August 29 is set to draw close investor attention, with shareholders awaiting insights into how India’s largest conglomerate plans to capitalise on emerging opportunities and fuel growth. Chairman Mukesh Ambani will address 3.5 million shareholders at the meeting at 2 pm on Thursday.

JM Financial pointed out that shareholders will closely monitor timelines for potential public listings of Reliance’s digital and retail units and updates on the progress of new energy projects. Here are five key things that investors will be looking out for this year:

1. Reliance Retail and Reliance Jio IPOs

Investors will keenly watch for any concrete plans or dates for initial public offerings of Reliance Jio or Reliance Retail. During the 2019 AGM, the management announced plans to list both businesses within five years.

Since then, investors have been anticipating a timeline for the announcement of these listings. Jefferies analysts predict Jio could go public in 2025 with an estimated valuation of around $112 billion.

2. Strategic Stake Sale in O2C Business

Investors will also watch for any potential strategic stake sales in Reliance’s oil-to-chemicals (O2C) segment, said JM Financial Services in a report. Details on possible buyers, transaction value, and strategic benefits of such a sale will be closely monitored.

Also Read | Brokerages remain bullish on Reliance Industries, highlight Jio’s growth potential

3. Progress on New Energy Projects

There will be significant interest in updates regarding ongoing projects in the new energy sector. Investors will look for specific timelines for project commissioning and assessments of potential earnings from these ventures. For FY24, RIL has allocated $1 billion in capital expenditures for its solar manufacturing business. The AGM is expected to provide more detailed insights into these developments.

Reliance is building a large green energy complex in Jamnagar, featuring giga factories for solar PV, energy storage, electrolysers, fuel cells, and power electronics. However, progress appears slow, according to analysts. Compared to the initial $10 billion investment plan for the first three years, only $2 billion has been invested.

4. 5G Monetization Plans

The AGM is expected to provide insights into Reliance Jio’s strategies for monetising its 5G network. This includes plans for leveraging 5G technology to drive revenue growth, potential partnerships, and how the rollout might impact overall financial performance.

Reliance Jio’s 5G rollout is accelerating, and analysts expect updates on subscriber growth, revenue strategies, and international expansion plans in the AGM to boost RIL stock’s attractiveness.

Also Read | RIL Q1 Results Highlights: Revenue up 11.5% YoY; Jio sees record PAT at Rs 5,698 crore

5. Succession Plan

Further details on Reliance Industries’ succession plans are of interest. Investors will look for updates on leadership transitions, key appointments, and how the succession strategy aligns with the company’s long-term vision. Chairman Mukesh Ambani revealed a succession blueprint in 2022, with Isha Ambani leading retail, Akash leading Jio, and Anant overseeing the energy business.

At last year’s AGM, Mukesh Ambani announced that he would retain the position of the company’s chairman and managing director for the next five years. This year, investors will be keeping a close eye on further updates around the leadership transition.

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