The 44th Annual General Meeting of Reliance Industries (RIL), the country's largest listed company by market capitalisation, is scheduled to be held this week on June 24, 2021. The key focus in the past several AGMs was largely on telecom and retail businesses which collectively provided revenue of Rs 2.44 lakh crore in FY21; experts believe this time will be no different.
In FY21, as per its targets, Reliance had the largest fundraise in Jio Platforms as well as Reliance Retail. Reliance Retail raised Rs 47,265 crore for a 10.09 percent stake from marquee global investors, while its telecom and digital services company Jio Platforms garnered Rs 1.52 lakh crore from several global investors including Google, Facebook and Intel.
In the last AGM, before stake sale in Reliance Retail, the company had raised a total of Rs 2,12,809 crore from Rights Issue, investments in Jio Platforms, and investment by BP, which largely helped the conglomerate become net-debt free, much ahead of its target of March 2021.
The company has been in the process to spin off its oil-to-chemical (O2C) business into a separate subsidiary. "The scheme for transfer of O2C undertaking to a wholly-owned subsidiary has been filed with the National Company Law Tribunal and is pending approval. The said scheme has been approved by the creditors and shareholders of the company," said Reliance Industries in its FY21 earnings press release.
Vinod Nair, Head of Research at Geojit Financial Services said shareholders would be delighted to know about details of plausible demerger of the main company into three different business of Jio, Retail and Petrochemical.
This is expected to generate a high amount of value unlocking for shareholders in the future, he said.
Also, announcements regarding the RIL-Aramco deal, the launch of 5G and new tech products & services are expected in the AGM, Nair said.
RIL, in its recent earnings press release, said Jio was conducting field trials for fine-tuning network performance and configurations for its 5G network, and work was also ongoing on standardising 5G device configurations by collaborating with original equipment manufacturers (OEMs).
Reliance further said it has scaled up JioMart to become a truly horizontal platform with a presence across Grocery, Fashion & Lifestyle, Digital and Pharma. In addition, JioMart has all the technological functionalities that should enable it to become a diverse third-party platform, it added.
Reliance Industries shares gained 22.2 percent since its last AGM held on July 15, 2020. Yea-to-date, the stock is 13.6 percent.
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