RIL Share Price Falls on Lack of Details on IPOs, AGM Focussed on Succession Plan
The Wire Staff
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New Delhi: The Reliance Industries' annual general meeting (AGM) happened on August 28, Monday, with chairman Mukesh Ambani announcing a slew of plans for the conglomerate aimed at strengthening India's position in the global economy.
This was a much-awaited event, following the tepid debut of Jio Financial Services on August 21, as Ambani was expected to announce a host of updates on the conglomerate and give potential insights into Jio Financial Services’ future plans.
In the 46th AGM, Ambani announced several digital, retail business plans, including launch of Jio AirFiber next month, among other things.
The RIL chairman also announced that Jio Financial Services will enter the insurance sector.
Among other plans, RIL will pursue wind power, target battery giga factory by 2026, the chairman said, according to news reports.
However, RIL shares were down 1.11% to close at 2442.55 apiece on the BSE on Monday. And, Jio Financial Services was down by 2.05% from its previous close, to close at Rs 210.10 on the NSE.
RIL also ended as the top loser in the Sensex index on Monday.
According to Mint, the RIL stock is now up just about 3% in the last one year against a 12% gain in the equity benchmark Sensex.
The news outlet reported that the market was expecting the company to reveal any plans of IPOs for Reliance Retail and Reliance Jio. However, nothing was announced with respect to these IPOs.
Santosh Meena, Head of Research, Swastika Investmart Ltd, told Mint that the stock fell because of a lack of information on the IPOs, which the market was expecting. The main focus was on the succession plan.
Isha, Anant and Akash Ambani have been inducted in the board of directors of Reliance Industries. They are set to become the non-executive directors on the RIL Board. Nita Ambani has stepped down. She will continue as the chairman of Reliance Foundation.
A company press release, according to the Indian Express, said, "Their appointment will take effect from the date they assume office after approval by the shareholders."
"I shall continue to perform my duties and responsibilities as Chairman and Managing Director for five more years, with greater vigour," Ambani said at the AGM.
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