- 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
AGMon the future course of the conglomerate.
It’s been decades
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 –
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
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.
- Why do we take over so many companies in business and start hotels and lifestyle business, especially in international markets?
Jio Martis 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?
- 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?
- 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?
- 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?
- The IPO market has become weak due to international market conditions. Is that slowing the split and listing of retail and telecom companies?
- Akash Ambani has been appointed as head of the telecom business. Is there a full succession plan?
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