RIL AGM 2022: Retail & Jio IPOs, new energy, 5G telecom plans, dividend; what to expect from Mukesh Ambani

Mukesh Ambani-led Reliance Industries Ltd (RIL) will hold its 45th Annual General Meeting (AGM) virtually, on 29 August, 2022. The oil-to-telecom conglomerate informed stock exchanges that the meeting will take place at 2 PM through video conferencing. The company in a BSE filing also noted that it will send its annual report FY22, notice of the AGM and the standalone and consolidated audited financial statements for FY22, along with the Board’s report, auditors’ report and other documents in electronic mode to the members of the company. The company is likely to announce plans for the progress in New Energy, 5G spectrum auction, and pricing, oil-to-chemical (O2C), IPO for telecom, and retail verticals.

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In the last five years, shares of RIL share price saw mixed trends on the company’s AGM day. Last year, in 2021, RIL share price declined 2.4 per cent to close the day at Rs 2,153.50 apiece. In 2020, RIL share price on AGM day fell 3.8 per cent; while in 2019, stock markets were closed on RIL’s AGM day due to Bakri-id, but the stock soared 9.72 per cent on the next day. In the past five days, RIL stock price has fallen nearly 1 per cent. The stock had hit a record high of Rs 2,855 apiece in April this year, and has fallen 12 per cent since then. In today’s session, RIL stock was ruling 1.6 per cent up at 2,575.60 apiece, against the previous close of Rs 2,533.95 on Friday.

RIL dividend announcement

The company has fixed 19 August 2022 as the record date for the FY22 dividend, which is likely to be announced in the RIL’s AGM. “The dividend, if declared at the AGM, will be paid within a week from the conclusion of the AGM,” the company said in a filing.  Reliance Industries has 22 August as the cut-off date to determine the members eligible to vote on the resolutions set out in the notice of the AGM and to attend the AGM, according to a regulatory filing to the stock exchanges. Reliance Industries expects that over the next 12 months, its investments across the Green Energy value chain will gradually scale up. “This new growth engine holds great promise to outshine all our existing growth engines in just 5-7 years,” the company said in its annual report for 2021-22.

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IPO of consumer businesses

JP Morgan, in a note dated 15 June, said it expects RIL’s AGM to be announcement-heavy. It said that expectations run high in the run-up to the AGM and this year (like the last 3) centers on concrete timelines being announced for IPOs of the Consumer business. “We do not expect any concrete timelines from this year’s AGM on the Consumer businesses IPOs (Jio, Retail), even though media reports (BL) have talked about IPOs of these businesses,” it added. Ravi Singh, VP & Head of Research, Share India Securities, said that the company may also announce the separation of its retail and telecom business from the oil-to-chemical business and respective IPOs for both the segments in its AGM.

Aamar Deo Singh, Head Advisory, Angel One, told FinancialExpress.com that investors are hoping to hear about the proposed IPOs of Jio & Retail, and it would be interesting to see if there is any concrete roadmap for this.

RIL New Energy

Last year, RIL made an announcement that Rs 75000 cr investment in the next 3 years in 4 Giga factories will mark a seismic shift in India’s clean energy pursuit. Research firm Bernstein said that it assumes RIL will construct 30GW of integrated solar capacity by mid-decade for $3.6bn or Rs 269bn based on a unit cost of $121M/GW. It also expects that company will construct 35GWh of battery capacity (net to company) by mid-decade for $3.5bn or Rs 260bn based on a unit cost of $100M/GWh. Currently there’s no fuel cell sales in India, Bersnstein has assumed a blend of global ASP for stationary power and fuel cells for trucking which equates to $1,369/kW in FY26.