RIL AGM 2021: JioPhone 3, laptop, 5G, dividend, Saudi Aramco deal update; what to expect from Mukesh Ambani

Mukesh Ambani-led Reliance Industries Ltd (RIL) is set to hold its 44th Annual General Meeting (AGM) later in the day. The oil-to-telecom conglomerate said it will send its annual report FY21, notice of the AGM and the standalone and consolidated audited financial statements for FY21, along with the Board’s report, auditors’ report and other documents in electronic mode to the members of the company. RIL is likely to announce plans for the oil-to-chemical (O2C) telecom, digital and retail verticals.

In the last five years, shares of RIL share price saw mixed trends on the company’s AGM day, falling on three occasions, while rising on the rest of the AGM days. Last year, in 2020, RIL share price on AGM day fell 3.8 per cent; while in 2019, stock markets were closed on RIL’s AGM day due to Bakri-id, but the stock soared 9.72 per cent on the next day. In the last seven days RIL stock price has gained 0.4 per cent. The stock had hit a record high of Rs 2,369.35 apiece in September last year, and has been range-bound since then. It is 7.4 per cent away from its all-time high levels.

RIL Dividend, bonus announcement

Reliance Industries fixed June 14 as the record date for eligibility to receive dividend for FY21. “It is long expected from the last few AGMs and since Reliance likes to keep the market price of shares around Rs 1,000 so we might get to see a 1:1 bonus announcement,” Gaurav Garg, Head of Research at CapitalVia Global Research, told Financial Express Online.

Jio Book

RIL’s digital arm Reliance Jio is reportedly planning to launch a Jio laptop. Garg added that the expected Jio Book is another attraction which might lure investor’s attraction as low-cost laptops. Brokerage firm HSBC Global Research in a report said that RIL may introduce a new affordable laptop to tap into the massive demand for work from home machines.

Jio Phone

In 2020’s AGM, RIL did not launch any new variant of the JioPhone, it is likely that Mukesh Ambani may announce the JioPhone 3 at 2021 AGM. The company in its annual report said that the JioPhone has upgraded over 10 crore users since its launch in 2017. “Over the last year, new investors have joined RIL’s digital and retail business at subsidiary level and RIL has formed new partnerships with global players like Google, Facebook, Microsoft, Qualcomm etc. Investors now expect RIL to give direction to these businesses and announce groundbreaking products,” PTI quoted HSBC Global Research report as saying. It added that RIL will likely announce a new smartphone partnered with Google and its pricing.

Green future

Mukesh Ambani’s Reliance Industries had earlier set a target of becoming carbon neutral by 2035. Asia’s richest man, earlier this week at the Qatar Economic Forum, said that there is no other option than adopting a sustainable business model. Mukesh Ambani could further elaborate on how he plans to transform his oil-to-chemical business into a sustainable one.

5G plans

At its previous AGM, Reliance Industries said they had indigenously developed technology for 5G in an effort to push the Make-in-India theme. Now trials are being conducted by Jio in various cities including Mumbai. Meanwhile, Bharti Airtel is also treading on the same path. Reliance could follow up with another announcement on 5G at its AGM today. “We expect an update on Jio-Google phone features (like 5G), potentially pricing and timeline,” BofA Securities said in a report. It added that clarity on JioMart/other online commerce businesses along with the JioMart-WhatsApp integration is also expected.

Saudi Aramco deal update

The delayed Saudi Aramco deal could also make its way to Reliance Industries’ AGM today. Earlier reports have suggested that Saudi Aramco chairman and Governor of the Kingdom’s wealth fund Public Investment Fund, Yasir Al-Rumayyan, may be inducted on the board of RIL ahead of the deal. Mukesh Ambani had in August 2019 announced talks for the sale of a 20% stake in the O2C business. Deal was delayed amid the pandemic but talks have now resumed.