Mukesh Ambani did not provide any information regarding the IPO of Reliance AGIM companies.
Asia’s richest businessman Mukesh Ambani on Thursday presented a plan for the future of the entire group at Reliance’s Annual General Meeting. He said that the group’s revenue will even double. He also made a grand Diwali gift to the country by announcing it on AI Cloud. Discussed about bonus shares. Gave information about Reliance retail store. Gave an update on the data centre. Also talked about what kind of company it is shaping up to be as a tech giant.
On the other hand, 35 lakh investors of Reliance Industries were waiting for announcements on other things. Investors were waiting for the announcement of IPO of retail and telecom arms. They were waiting for 5G monetisation after tariff hike. Moreover, investors were also waiting for further clarifications from Mukesh Ambani on succession. But Reliance AGM left all these issues hanging. Let us discuss in detail what issues were not announced at Reliance Industries AGM.
Attention was on Jio and Retail’s IPO
Not just 35 lakh Reliance investors, but over 18 million investors in the country were expecting Mukesh Ambani to announce the IPO of Reliance Jio and Reliance Retail. That too at a time when retail revenues were seen to be over Rs 3 lakh crore in the last financial year. But Mukesh Ambani did not say a single word about the IPO. In fact, at the Annual General Meeting in 2019, Mukesh Ambani announced the IPO of both the companies. On that day, Reliance shares rose by around 10 per cent. After that, 5 years have passed, but no action has been taken regarding the IPO of the companies. Jefferies is confident that Jio’s IPO is expected next year. The valuation of which may be $112 billion.
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There is no special announcement regarding new energies.
On the other hand, Mukesh Ambani talked about data centers, but this time new energy was not his focus at all. What is special is that Mukesh Ambani has been investing a lot of money in new energy businesses for some time now. Reliance is developing a mega green energy campus in Jamnagar with solar photovoltaic gigafactories, energy storage, electrolyzers, fuel cells and power electronics. Of the $10 billion investment plan, the company has only invested $2 billion in the first three years, which shows how slowly the work is progressing.
No mention of 5G monetization
On the other hand, when Jio’s new tariffs were rolled out in July, there was a lot of discussion about 5G monetization. Investors were expecting Mukesh Ambani to give detailed information about 5G monetization at the Annual General Meeting. But nothing of the sort happened. Incidentally, Mukesh Ambani definitely gave information about 5G launch and R&D. It was also said that Jio’s 5G users in the country have crossed 13 crore. The company has spent $437 million on R&D. But no update came out on monetization.
There are no new updates on the succession plan
About two years ago i.e. at the Annual General Meeting in the year 2022, Mukesh Ambani had presented the outline of his succession plan. Under which the retail business was handed over to Isha Ambani. Jio i.e. the telecom arm was handed over to Akash. On the other hand, Anant Ambani was handed over the New Energy Business. Later in the year 2023, Mukesh Ambani inducted his three sons on the board of Reliance which was a part of the succession plan. Mukesh Ambani also said that he will continue to be the head of the group for the next five years. In such a situation, investors were hopeful that Mukesh Ambani might give a fresh update this time on the succession plan. Investors were disappointed on this count as well.
The company’s shares rose after 5 years
On the day of the Annual General Meeting of Reliance, the company’s shares rose after 5 years. Previously, from 2020 to 2023, on the day of the Annual General Meeting, only a drop in the company’s shares was observed. On the day of the Annual General Meeting of the year 2024, a one and a half percent increase in the company’s shares was observed. By the way, from last year’s Annual General Meeting to the day of the Annual General Meeting of this year, there has been a 24 percent increase in the shares of Mukesh Ambani’s Reliance. At the same time, during the Annual General Meeting of the year 2019, an increase in the shares of the last company was observed, which was 10 percent.
