The annual general meeting (AGM) of Reliance Industries (RIL) is no less than a mega event for the investors of the company as it not only sheds light on the company's performance of the last year but also reveals the company's growth plan for the near future, among other things.
RIL will conduct its 44th AGM virtually on June 24, 2021, at 2 pm. The oil-to-telecom conglomerate said it will send its FY21 annual report, along with the board’s report, auditors’ report and other documents required in electronic mode to the members of the company.
In last ten years, shares of RIL saw mixed trends on the day of the company's AGM, reacting to the company's announcements, falling on six occasions, while rising on the rest AGM days.
On the AGM day of 2019, the stock surged almost 10 percent. The 42nd AGM was held on August 12, 2019, but since the market was closed on that day due to Bakri-Id, the stock saw a reaction on the next day. It vaulted 9.72 percent.
The key announcements at the 42nd AGM included 1) Saudi Aramco deal for a 20 percent stake in RIL oil-to-chemicals business at an enterprise value of $75 billion. 2) The launch of Jio's IoT platform which Ambani said offers Rs 20,000 crore revenue opportunity on an annual basis. 3) Roll-out of Jio Fiber and the Jio Set Top Box to accept broadcast signal from LCO partners. 4) The company invested in 14 startups that complement Jio's services. 5) Reliance Retail crossed Rs 130,000 crore turnover. 6) Jio and Microsoft commitment for long-term alliance.
Read: Key highlights of last four AGMs
The stock has seen a gain of 27 percent on BSE in one year (since June 22, 2020) against a 51 percent rise in benchmark Sensex. In the calendar year 2021 so far, RIL's stock is up 12 percent against a 10 percent rise in Sensex.
Expectations from 44th AGM
Experts are of the view that the company may make announcements across its telecom, retail and O2C businesses.
"In the upcoming AGM, Reliance is likely to announce kickstarting of 5G services which might begin in late 2021. Moreover, 5G phones are likely to be revealed in the AGM which might be another interesting development to watch out for," Gaurav Garg, Head of Research at CapitalVia Global Research told Moneycontrol.
As per global brokerage firm Goldman Sachs, updates around the following catalysts are expected:
(1) Telecom tariff hikes.
(2) New product launches with Google, Facebook and Microsoft
(3) Potential value unlocking from a proposed energy business stake sale.
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