Reliance Industries Ltd (RIL) is gearing up for its 47th annual general meeting (AGM) on August 29, with investors eager for updates on several critical areas. The focus will be on potential timelines for the initial public offerings (IPOs) of its telecom and retail businesses, as well as developments in its New Energy sector.
Jio and Retail IPOs
Investors are particularly interested in hearing about the timeline for the potential public listings of Reliance Jio Infocomm (Jio) and Reliance Retail. Analysts have projected that Jio could be valued at approximately $112 billion upon its IPO. Additionally, there is anticipation regarding any strategic stake sales in RIL's Oil-to-Chemicals (O2C) segment.
New Energy Sector Developments
In previous AGMs, RIL announced significant investments in New Energy. At the 2022 AGM, the company committed Rs 75,000 crore to this sector. Mukesh Ambani highlighted progress in building a manufacturing ecosystem for New Energy, which aims to support large-scale Green Hydrogen production and green mobility.
The FY24 annual report indicates that RIL will continue exploring opportunities for capital-raising to support its growth. The company is set to commission its first module and cell manufacturing train in FY25 and has already received BIS certification for solar panels produced in Jamnagar. Furthermore, RIL has begun renewable energy development work in Gujarat and signed its first Power Purchase Agreement (PPA) with MSEDCL for 128 MW over 25 years.
Future Prospects
Analysts from ICICI Securities and Bernstein are closely watching the rollout of new energy projects and their impact on RIL’s capital investments. With a projected increase in capital employed across various segments, investors will be monitoring the progress of new energy products and the potential IPOs of Jio and Reliance Retail. Bernstein has revised its target price for RIL to Rs 3,440, up from Rs 3,190.
Investors will also be keen on updates regarding 5G monetization strategies and any news about RIL's succession plans.
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