New Delhi | Jagran Business Desk: After jumping to the sixth spot in World’s richest personalities, Indian Billionaire Mukesh Ambani is likely to announce plans of leveraging recent partnerships with global technology giants like Facebook as well as a vision to maximise oil to chemical conversion at his flagship Reliance Industries' annual shareholder meeting on Wednesday.

Ambani, 63, may at the company's first online AGM also give a sneak preview of his vision for decarbonization of energy molecules to create value-added products with almost no carbon emissions. Strategic direction post-COVID-19 and further details on asset monetisation are key expectations from the 43rd AGM of RIL.

What to expect from Reliance AGM this year:

-The AGM is "expected to report on progress on asset monetisation (INViTs and stake sale in O2C business), more details on strategic partnerships in digital business, growth plans on financial vertical, oil to chemical integration progress and new technologies," Morgan Stanley said as reported by PTI.

 

-We expect investor focus to be on asset monetisation details especially on telecom InvITs and Saudi Aramco stake sale.

-Capital allocation and growth strategy post-COVID-19.

-Plans to leverage the partnerships with global technology peers and integrate its retail, digital and financials business

-Details on oil to chemicals integration and expansion of oil retail and new energy business with BP.

-Goldman Sachs said the focus of the AGM is expected to be largely on product launches around RIL's partnership with Facebook potentially ranging from integration of JioMart with WhatsApp, additional colour on payments business and launch of a large product ecosystem (Super App) where Jio could integrate its services with WhatsApp.

 

"We also expect additional colour on their vision to maximise oil to chemical conversion (to over 70 per cent) to create an annuity-like cash flow, potentially leveraging its proprietary Multi-zone Catalytic Cracking process and through a potential strategic partnership with Saudi Aramco," it said.

-JP Morgan said the AGM could have updates on Reliance Retail (large new commerce/e-commerce rollout)."While we do not expect any large strategic investor in Reliance Retail any time soon, this is a key potential event the investors will be watching, especially as the Jio Platforms stake sale seems done," it said.

-Goldman Sachs said it expects management to provide greater insights into the strategic partnership with Saudi Aramco and how that could ?t into their ambition of an industry-leading oil to the chemical platform with over 70 per cent conversion of oil into petrochemicals.

-BofA Securities said of the five key initiatives announced in last AGM, RIL completed the strategic stake sale of Jio, petro-retail, and moved to zero net debt. "We might get an update on the remaining two - stake sale to Aramco and of Reliance Retail."

Ambani had at the last AGM on August 12, 2019, announced plans to sell stake in RIL's technology venture as well as in its oil-to-chemical (O2C) business to help become net debt-free by March 2021.

The net debt-free status has been achieved much ahead of the deadline thanks to Rs 1.18 lakh crore amassed through the sale of 25.24 per cent in Jio Platforms Ltd - the unit that houses India's youngest but largest telecom firm Jio Infocomm and apps - to likes of Facebook, and the country's biggest rights issue of Rs 53,124 crore.

The sale of a 20 per cent stake in O2C business, which comprises of its twin oil refineries at Jamnagar in Gujarat and petrochemical assets, to Saudi Aramco for an asking of USD 15 billion has however dragged on, although RIL has said it is on track.

Proceeds from the stake sales in Jio Platforms along with the Rs 53,124 crore raised in a rights issue in June and from the sale of a 49 per cent stake in its fuel retail network to BP last summer for Rs 7,000 crore, will help the company become net debt-free, Reliance announced last month, once the promised funds come in (75 per cent of the funds from the rights issue will come in next year).

 

 

 

(With PTI Inputs)

Posted By: Talib Khan