RIL Shares In Red Ahead Of AGM; Will Ambani's Announcements Make It Green? | 5 Things To Expect

In the last 10-year, RIL shares closed down six times after the AGM and closed up four times post-AGM. RIL shares surged almost 10% after the 2019 AGM and closed down 3.71% after the 2020 AGM. 

File Photo

Mumbai: Reliance Industries Limited (RIL) shares opened in red ahead of its 44th annual general meeting on Thursday. Shares of India's most valued firm were trading down 0.7% or Rs 15 at Rs 2190 in a firm Mumbai market. 

In the last 10-year, RIL shares closed down six times after the AGM and closed up four times post-AGM. RIL shares surged almost 10% after the 2019 AGM and closed down 3.71% after the 2020 AGM. 

"Over the past 10 years, in the week and month post the AGMs, the stock has outperformed Nifty 6/10 and 7/10 times, potentially implying that the speech managed to give more confidence," HSBC said in a note.

In one year, the stock has increased by 27% on the BSE, compared to a 51% increase in the benchmark Sensex. So far in the calendar year 2021, RIL's stock is up 13% versus a 10% rise in the Sensex.

Here are the top five announcements to expect from RIL's 44th AGM:

1. Mukesh Ambani is expected to clarify the long impending $15 billion deal with the world's largest oil firm Saudi Aramco to sell a 20% stake in the newly carved out oil-to-chemicals (O2C) business of RIL.
2. Reliance may launch its first 5G phone in association with Google and JioBook, a low-cost affordable laptop from Reliance Jio. The phone's pricing would be critical to converting the feature phone subscribers to Jio 4G subscribers. Last year, Ambani spoke about the 5G deployment in the country, and the investors will be keenly watching Ambani's update on the 5G deployment in the country.
3. Investors will look for clarity on the operations of JioMart, which now has a presence in 200 cities, along with AJIO—its fashion and lifestyle platform. According to global brokerage and research firm Goldman Sachs, retail could be the next engine of growth for RIL as it believes that the retail EBITDA could grow 10x over the next 10 years.
4. Details of the road map to meet the 2035 target of de-carbonization are expected to attract a new investor pool focused on ESG (environmental, social, and corporate governance) companies. "We have no option as a society, as a business, but to really adopt a sustainable business model," Ambani told Bloomberg at the Qatar Economic Forum on Monday.
5. The shareholders and investors could be looking for a hint about the demerger of the main company into Jio, retail and petrochemical businesses, a move that market experts see as a succession plan for the 64-year old billionaire.