Analysts expect Oil business to take centre stage at Reliance AGM

NEW DELHI:  Reliance Industries is set to host its 43rd annual general meeting on July 15. So far, the company has met most of the promises made a year ago and observers await what new projects chairman Mukesh Ambani has in store this year.

Analysts say an update on the long-pending Aramco deal; the roll-out 5G services; the overseas listing of Jio Platforms; value unlocking plans in fibre and tower infrastructure via InvITs funds; advanced talks on the acquisition of Kishore Biyani’s Future Group; an expansion of financial services; and a roadmap for JioMart are likely to take centre stage on Wednesday. 

The oil major has also managed to secure a flurry of big-ticket capital investments in Jio Platforms from tech giant Facebook and other Silicon Valley players. That aside, the company has managed to become debt-free well ahead of the schedule given by Ambani. 

In a report titled—‘What to expect from RIL’s AGM on July 15’—Bank of America (BofA) analysts said, “We might get an update on the remaining two goals: Stake sale to Aramco and that in Reliance Retail,” 
Analysts also agree that updates on the Aramco stake sale may be given. Because, while a barrage of announcements have been made for Jio Platforms, nothing much has been seen so far on the core business side.

“...investors have highlighted some expectations of an announcement of timelines for completion of the O2C (Oil to Chemicals) stake sale, and any update that could imply closure of the deal in the next few months would be taken positively,” JP Morgan said in its note.

The latest RIL annual report did mention that the company was working to complete the Aramco deal. According to statements made in the last AGM, Aramco was to buy a 20 per cent stake in RIL’s O2C division at an enterprise value of $75 billion. However, nothing much has been seen so far, after the pandemic hit oil markets hard.