More than 22 lakh shareholders of India’s second most valued company, Reliance Industries Ltd., will be keenly watching its 42nd annual general meeting, which will be held on Aug. 12.
Asia’s richest individual Mukesh Ambani is expected to announce the commercial launch of fiber broadband service, according to brokerages. At last year’s AGM, the broadband service JioGigaFiber was launched on a trial basis by Reliance Industries’ telecom arm Reliance Jio Infocomm Ltd.
JPMorgan expects the company to also give details on its retail arm’s ‘New Commerce’ plans and on the next leg of growth in sectors like real estate, petrochemicals and refining. It, however, doesn’t expect any immediate steps towards the same.
Bank of America Merrill Lynch expects details on affordable enterprise offerings—particularly to small and medium enterprises—incremental data-points from new-commerce businesses and on rural empowerment led by agri-tech/ed-tech and health-tech powered by Jio’s infrastructure. The brokerage, however, doesn’t anticipate any material stock price implications led by AGM comments, but does look forward to incremental revenue growth opportunity in fiber-broadband.
Major Announcements In Last Three AGMs
- Launch of JioPhone 2 at Rs 2,999.
- Announced the Jio Monsoon offer where feature phone can be exchanged for a new JioPhone for Rs 501.
- Announced the launch of fixed-line broadband service JioGigaFiber.
- Announced launch of JioPhone with a refundable deposit of Rs 1,500.
- Launch of telecom arm Reliance Jio.
- 4G devices from Rs 2,999, cheap data plans, unlimited night-time, 4G connection and free Jio-to-Jio voice calls.
Shares of Reliance Industries have risen over 120 percent since it said it would launch its telecom business.
Nearly 60 percent of the 36 analysts tracking the company have a ‘Buy’ rating on the stock, according to data compiled by Bloomberg. The 12-month consensus target price for Reliance Industries is Rs 1,398—suggesting an upside of 19 percent.―Bloomberg Quint