From 5G monetization to IPO, these issues were missing in RIL AGM

RIL AGM 2024 / From 5G monetization to IPO, these issues were missing in RIL AGM

RIL AGM 2024 - From 5G monetization to IPO, these issues were missing in RIL AGM

RIL AGM 2024: Asia's richest businessman Mukesh Ambani on Thursday presented the blueprint of his group's future at the Annual General Meeting (AGM) of Reliance Industries. Ambani said that the group's revenue will double and gave a Diwali gift to the country by making a big announcement on AI cloud. Apart from this, information was also given about bonus shares and discussed the update of Reliance retail store and data center. He also told how the company is emerging as a tech giant.

However, clarity was not given on many important issues in this AGM, which investors had expected. Let us know on which important issues no announcement was made in the AGM.

Silence on IPO

More than 18 crore investors of the country, including 35 lakh investors of Reliance, expected that Mukesh Ambani would announce the IPO of Reliance Jio and Reliance Retail. Especially at a time when the revenue of Reliance Retail has exceeded Rs 3 lakh crore in the last financial year. But Ambani did not say a single word on the IPO. Last year, in the 2019 AGM, he announced the IPO of both the companies, after which Reliance's stock saw a rise of about 10 percent. Even after five years, there has been no progress on this issue. Jefferies believes that Jio's IPO can come next year, with a potential valuation of $ 112 billion.

Silence on New Energy

Although Ambani gave information about the data center, his focus on the new energy business was completely missing. Reliance is developing a mega green energy campus with giga factories in Jamnagar, with an investment plan of $ 10 billion. But only $ 2 billion has been invested in the first three years, which shows slow progress.

No mention of 5G monetization

When Jio's new tariffs came into effect in July, there was a lot of discussion about 5G monetization. Investors had expected Ambani to give detailed information on 5G monetization in the AGM. However, 5G rollout and R&D were discussed, but no new information was given on monetization. Currently, Jio has more than 13 crore 5G users, and the company has spent $437 million on R&D, but no new update on monetization was revealed.

No new update on succession plan

In the 2022 AGM, Ambani presented the blueprint of the succession plan, in which the retail business was handed over to Isha Ambani, the telecom arm to Akash Ambani and the new energy business to Anant Ambani. Investors were hoping that this time there would be a new update in the succession plan, but no new information was given on this issue as well.

Stock market boom

On the day of Reliance AGM, the company's shares have seen a rise after five years. In the last few years, the company's shares had seen a decline on the day of AGM. This year, on the day of 2024 AGM, the shares have jumped by one and a half percent. From last year's AGM to this year's AGM, Reliance shares have seen a gain of 24 per cent, while during the 2019 AGM, the shares had gained 10 per cent.

During this AGM, Mukesh Ambani discussed many important aspects, but many major expectations of investors were not fulfilled. There is a possibility of clarity on these issues in the future.