Reliance AGM today: What to expect, how to trade and historical track record
Reliance Industries shares last week makes it evident that investors are not expecting Mukesh Ambani to make some big-bang announcement at today's annual general meeting (AGM) of RIL. But if the billionaire reveals the roadmap for any further value-unlocking exercise, it could change the stock's trajectory in the near term.
Shareholders of the demerged entity Jio Financial Services (JFSL), which has lost almost 20% from its listing price of Rs 265, are also eagerly waiting for Ambanis to spill the beans on the company's future plans.
In FY 2019 AGM, while discussing the company's consumer-facing businesses of retail and Jio, RIL’s management had announced it would “move towards listing of both these companies within the next five years”.
And then again at last year's AGM, Ambani had talked about doubling RIL’s market cap in five years.
«For RIL to double its value over the next four years, this would involve value unlocking from the massive investments the company has made across segments (Retail, Jio) and would make (New Energy). It would also require selling stakes/listings of some of these businesses,» JP Morgan's Pinakin Parekh said.
JFSL's demerger last month had sparked frenetic buying of RIL shares last month by retail investors and RIL bulls say that announcement of value unlocking in Reliance Retail could spark a similar rally.
«We believe RIL’s AGM is likely to be the next trigger for the stock, where it may provide a roadmap for value unlocking in the retail segment and further updates on new energy business and JFSL,» Nomura's research analyst Hemang Khanna said.
RIL shares history on AGM day
In the last 10 years, RIL shares have ended in the red on AGM day seven times.
The worst AGM day for RIL investors, in
