Top six likely announcements to watch out for at RIL's AGM on June 12

By D K Aggarwal

As Reliance Industries prepares to host its 41st AGM next Friday, it is likely that Mukesh Ambani may use the platform to announce an official launch date for the telecom venture Reliance Jio and its future plans, besides capital expenditure plans.

Reliance Jio: If news is to be believed, the parent company has invested Rs 29,700 crore in 2014-15 from Rs 22,700 crore in the prior financial year in this telecom subsidiary. This new subsidiary is establishing a nationwide fourth-generation telecom network in order to provide communication and digital services such as education, healthcare, security, financial services, government-citizen interfaces and entertainment.

Retail: Reliance Retail, the retail arm of Reliance Industries, is an ambitious of e-commerce business. It is expected that at the upcoming AGM, Ambani may share plans for the same.

Petrol Pumps: With many initiatives taken by the Modi government, the confidence of the petrochemical and oil sector has regained focus in India. It is expected that we may hear some development related to the company's business in these sectors.

Shale Gas plans: Friday's AGM may throw light on disinvestment in overseas shale gas business. Reliance Industries Ltd is set to sell its 45 per cent stake in a shale gas joint venture with Pioneer Natural Resources at Eagle Ford, US.

Fund Raising plans: In the AGM, Reliance Industries would also seek the shareholders' nod (as announced earlier) to raise Rs 10,000 crore through a privately-placed NCD issue to fund its ongoing capital expenditure.

Mukesh Ambani may give further insight to its shareholders regarding building the country's largest port at Rewas, which has been stuck for over a decade. As the Union shipping minister has promised to find a solution to the issue, it may soon see the light of the day.

Update on KG-D6: The long-pending gas price from ultra-deep water blocks may be a hot topic that the management would discuss at the AGM. The oil ministry has recently proposed that contractors of deepwater blocks can sell up to 50% of production in the open market to realise additional cost in extracting gas from difficult regions.

It would be interesting to hear regarding the gas pricing from the Ambani. All these altogether would dictate the future stock price of the company.

(The author is CMD, SMC Investments and Advisors Ltd. Views and recommendations expressed in this section are his own and do not represent those of EconomicTimes.com.)