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What should investors ask Mukesh Ambani at his company’s AGM?

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  • RIL’s annual general meetings have been labeled ‘carnivals’ by market experts because of the high attendance.
  • The company has acquired many companies in various sectors, in addition to the many interests it already has.
  • Here are some of the questions investors can ask the chairman of the AGM on the future course of the conglomerate.

It’s been decades Dhirubhai Ambani the famous saying that a phone call should be cheaper than a postcard. Nobody writes postcards anymore. But Ambania generations are still experimenting with ever newer ways of bringing people ‘closer’.

During the first pandemic year, Isha and Akash Ambani spoke in their 2D and 3D avatars via a holographic call at the company’s 41st Annual General Meeting; presentation of their futuristic product – Jio Glass.

The twins kept up two important traditions: announcing the next major of the group’s ever-expanding interests; and of course the glare factor of AVAs.

The celeb factor

2019, Mukesh Ambanic connected with Alphabet CEO Satya Nadella after announcing a deal with Google. Two years later, he “welcomed” Saudi Aramco’s chairman Yasir Al-Rumayyan to the board. The $15 billion deal with the oil giant was canceled a few months later due to a valuation mismatch.

Still, the ‘big announcement’ optic has worked so well that RIL shares usually appreciate in value before an AGM. Especially since 2016, when the soft launch of telecom started, it has never stopped. Most of them also focus on the technologies of tomorrow – whether it’s shopping via VR or online shopping.


The reach and depth of Relianceverse

It’s not just metaverse or virtual reality that the group is counting on – the sheer number of acquisitions and interest it has in startups has turned its interests into a mini-Relianceverse. Although they have acquired interests in more than 20 companies since 2019. The ticket size of these acquisitions ranges from $2 million to $200 million respectively from Sankhya Sutra Labs to Dunzo.

The companies belong to niche specializations – from fluid dynamics software simulation software VR imaging to ERP and SaaS companies, e-commerce companies, creative home solutions to AI-powered learning platforms. However, the latest acquisitions relate to lithium and sodium battery solutions as the group ventures into green hydrogen.

According to a Bank of America investigative report, the historic mergers and acquisitions show a pattern — they were all done to add value or to fill gaps in RIL’s consumer offerings, where management felt it was difficult to build internally.

“All investments fall under five categories: telecom, retail, education, healthcare and agriculture. A new clean energy category has been added in 2020-21, where further investments have been made with a view to accessing clean technology,” the report said.

This BoFA rule is exceptions, however: Mandarin Oriental’s luxury hotel in New York for $98 million, the UK-based StokePark hotel for $79 million, SkyTran, a clean-tech podcar transportation system in the US, as well as a smaller one. acquisition of IMG Reliance, an event management company for $7 million.

This is the part where investors seek clarity from management and the best way to do it is at the Annual General Meeting to be held on August 29, 2022.

Questions to ask

Reliance AGMs have been blessed with a large and wide attendance, leading market warden SP Tulsian to once call it a “carnival.” While most people come to catch a glimpse of India’s richest relatives and entertain others with
shayarisInvestors should also do what AGMs are for: ask questions about the direction of the company and the value it creates.

Currently, RIL is an oil-to-telecom-to-retail-to-new-energy business that is being driven in several directions. Here are some of the questions to be answered during the AGM.

  1. Why do we take over so many companies in business and start hotels and lifestyle business, especially in international markets?
  2. Jio Mart is nowhere near Amazon, Flipkart, or even startups like Swiggy Instamart. When can we expect a possible sync with Dunzo and become a serious e-commerce player?
  3. Reliance JioTV and JioFibre launched with the promise of first show movies, but Voot and JioTV don’t come close to Hotstar, Prime or Netflix. Will the $3 Billion IPL Media Rights Be a Game Changer?
  4. We’ve paid nearly $11 billion for 5G spectrum, when can we expect the payout? And when will we reach the target of 500 million subscribers?
  5. Reliance has plans for the production of green hydrogen, biogas and solar PV, which are capital intensive. When can we expect a split or fundraising?
  6. The IPO market has become weak due to international market conditions. Is that slowing the split and listing of retail and telecom companies?
  7. Akash Ambani has been appointed as head of the telecom business. Is there a full succession plan?

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