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| Reliance Industries AGM 2024 |
On August 29, Reliance Industries Ltd announced that it would evaluate and propose a bonus share issuance at a 1:1 ratio for its shareholders during a board meeting scheduled for September 5.
The company, recognized as India's most valuable by market capitalization, shared this news just moments before its 47th annual general meeting.
RELIANCE INDUSTRIES AGM
During his speech to the shareholders, Mukesh Ambani highlighted the company's robust financial results and ongoing business growth, emphasizing the importance of rewarding shareholders.
The company announced in a stock exchange filing that a Board of Directors meeting is set for Thursday, September 5, 2024, to discuss and propose to shareholders the issuance of bonus shares at a 1:1 ratio, funded by the capitalization of reserves.
The index heavyweight is set to announce its fifth bonus share reward for shareholders, pending approval during the board meeting scheduled for September 5. This marks a significant moment in the history of the company's bonus and rights issues.
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| Reliance Industries share |
The share price of Reliance Industries saw a significant increase of almost 3 percent during intraday trading, following the company's announcement that its board will deliberate on the issuance of 1:1 bonus shares on September 5.
As news broke, the stock experienced a rise of 2.63 percent, reaching Rs 3,074.80 on the BSE, while at the NSE, it climbed 2.58 percent to the same price point.
This positive development also led to a substantial boost in the company's market valuation, which soared by Rs 42,399.24 crore, bringing the total to an impressive Rs 20,60,461.42 crore.
Reliance Oil to Chemical Business
Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited (RIL), emphasized on August 29 that the company's oil-to-chemical sector remains a strong driver of growth.
During the 47th annual general meeting (AGM) of RIL, he highlighted the company's commitment to investing in new capacities and capabilities to address the increasing energy demand in India.
- The oil-to-chemical sector remains a strong driver of growth, consistently improving its financial outcomes for the foreseeable future, as emphasized by Ambani. The company is committed to investing in new capacities and capabilities to address the increasing demand in India.
- Ambani noted that the previous year was challenging due to a complex global environment, marked by geopolitical tensions and sluggish economic growth in Western nations, which resulted in reduced demand. Nevertheless, Reliance successfully maneuvered through these challenges to achieve industry-leading results.
- On the supply front, significant capacity expansions, especially in China, led to an oversupply situation, resulting in considerable volatility in fuel and downstream chemical margins, with some experiencing declines to levels not seen in several years, according to Ambani.
In the fiscal year 2024, the O2C segment generated revenues amounting to Rs 5,64,749 crore ($67.9 billion) and recorded an EBITDA of Rs 62,393 crore ($7.5 billion).
Ambani noted that Reliance Industries Limited (RIL) consistently worked to procure favorable feedstock from various intricate global locations despite facing a challenging landscape. The company's diversification initiatives enabled it to refine 60 different grades of crude oil, incorporating 13 new varieties.
According to Ambani, India's demand for petrochemicals and polyester is projected to show robust growth in various sectors, including consumer goods, infrastructure, automotive, packaging, and agriculture, fueled by the swift development of the domestic manufacturing sector.
He further noted that to address this increasing demand, we are enhancing our production capabilities across both established and emerging chemical value chains.
In the order-to-cash sector, sustainability remains a crucial focus, and Reliance is positioning itself to become one of India's foremost consumers of renewable energy.
"Moreover, Reliance is advancing significantly in multiple sustainability projects, such as the recycling of PET, the chemical recycling of plastics to generate pyrolysis oil, the recycling of polyolefins, the transformation of hazardous waste into alternative fuels and raw materials, and the establishment of zero-waste stores," Ambani stated.
Reliance Jio Business Outlook
JioCinema, the streaming service, has achieved over 15 million paying subscribers just 100 days after the introduction of its new subscription plans, as announced by Reliance Industries chairman Mukesh Ambani during the company's 47th annual general meeting (AGM) on August 29.
In April, JioCinema revamped its pricing model, now providing monthly subscription options priced between Rs 29 and Rs 89, marking a significant decrease from the previous monthly fee of Rs 99.
The updated pricing structure is considerably more affordable compared to competing services like Netflix, Amazon Prime Video, Disney+ Hotstar, Zee5, and Sony LIV, among others.
"JioCinema's latest subscription offering is revolutionary... This marks the quickest expansion in this sector," Ambani stated.
In the past year, Reliance has formed partnerships with major media companies including Warner Bros.
Discovery, Paramount Global, and NBC Universal, positioning JioCinema as the exclusive streaming platform for their content brands, which encompass HBO, Warner Bros., Universal Television, Universal Pictures, and Dreamworks Animation.
To enhance children's entertainment offerings, Reliance has entered into an agreement with Pokemon Co. to broadcast more than 1,000 episodes along with approximately 20 films from the renowned Japanese anime series, Pokemon.
In June 2022, Viacom18 secured the streaming rights for the IPL tournament covering the years 2023 to 2027 and successfully streamed the entire tournament at no cost on JioCinema last year.
The transition led to the service achieving a world record for the most concurrent users watching a cricket match, with over 32 million viewers tuning in simultaneously for the IPL 2023 final in May 2023.
This record was later surpassed by Disney+ Hotstar during the ICC World Cup 2023, which reached an impressive 59 million concurrent viewers in November 2023.
In his speech at the Annual General Meeting, Ambani highlighted that the second season of IPL on JioCinema was a remarkable success.
The event attracted an audience of 620 million Indians, reflecting a remarkable 38 percent increase compared to the previous season. Overall viewership surged by 50 percent, establishing it as the most-watched livestream event globally, according to Ambani. He noted that this success was sustained during the recently concluded Paris Olympics, although he did not provide specific details.
Reliance's media division surpassed Rs 10,000 crore, achieving a notable growth rate of 49 percent. The entertainment segment, Viacom18, experienced a significant 62 percent increase, primarily fueled by its sports offerings, as reported by the company.
These impressive figures are anticipated to rise further as the Ambani-led conglomerate moves forward with a Rs 70,350-crore merger involving Disney's Indian media assets, following the approval of the deal by the Competition Commission of India (CCI) on August 28.
Upon the conclusion of the agreement, the ownership of two of India's foremost streaming services—Disney+ Hotstar, which dominates the subscription video streaming sector, and JioCinema, a key competitor in the ad-supported video streaming arena—will be consolidated under a single entity.
As of June 2024, Disney+ Hotstar boasts 35.5 million paid subscribers, solidifying its position as the leading service in India's fiercely competitive subscription video streaming market.
Analysts from brokerage firm Bernstein estimate that the newly formed entity will command approximately 85 percent of the video streaming audience in India.
In his address at the Annual General Meeting, Ambani highlighted that the collaboration with Disney signifies the dawn of a "new era in India's entertainment sector."
"We are merging content production with digital streaming capabilities. Our focus on a digital-first strategy will ensure exceptional content is accessible at competitive prices. We aim to meet the diverse preferences of all consumers and deliver top-tier digital entertainment across various genres," he stated.
"Similar to our ventures in Jio and Retail, the growth of our Media division will serve as a crucial driver of expansion within the Reliance ecosystem," Ambani added.
Reliance Announce Bonus Issue Share
Reliance Industries has announced a bonus issue in the ratio of 1:1 today. Since the year 2000, the company has executed two previous bonus issues, specifically in 2009 and 2017.
The last significant corporate action undertaken by Reliance Industries was the completion of the largest equity fundraising in the Indian capital markets, which was achieved through a rights issue amounting to Rs 53,125 crore in 2020.
The promoters fully participated in this rights issue, contributing a substantial equity infusion of Rs 26,500 crore, which underscored their strong confidence in the long-term potential of the company's diverse business operations and simultaneously facilitated a reduction in its debt levels.
The Mukesh Ambani family, as the primary promoters, possesses a 50.33 percent stake in Reliance Industries Limited (RIL). Minority shareholders have significantly contributed to the company's market capitalization growth, aligning with the Ambani vision and benefiting from RIL's status as the most valuable firm in India, boasting a market capitalization exceeding Rs 20 lakh crore.
With more than 3 million retail shareholders, RIL has one of the largest bases of investors in the nation. Although the recent bonus issue does not have a direct effect on the company's overall valuation, current shareholders are poised to reap the rewards from the expansion of its digital, telecom, and retail sectors, in addition to its traditional operations.
Furthermore, they stand to benefit from the potential unlocking of value in new ventures in the coming years. The bonus issue will result in a reduction of the nominal stock price by half due to the 1:1 ratio, thereby enhancing accessibility for a broader range of investors.
In recent years, RIL has implemented a range of strategic initiatives aimed at enhancing its portfolio by establishing robust growth platforms.
This strategy is evident in the consumer-oriented segments, including Jio and RRL, which now contribute nearly 50% of the consolidated operating profits. With a solid capital expenditure pipeline, the company is committed to maintaining its growth trajectory by exploring new sectors, particularly in renewable and clean energy.
The organization presents a distinctive combination of growth potential and value for investors interested in the domestic market.
RIL's dominance in retail, oil, and telecommunications is expected to generate consistent cash flows, while its investments in renewable and clean energy position it as a compelling option for those looking to capitalize on the ongoing transformation within the energy sector.
Beginning in 2024, Reliance Industries Limited (RIL) has experienced additional growth in its share value, leading to a market capitalization that has exceeded Rs 20 lakh crore.
Reliance Bonus History
| ANNOUNCEMENT DATE | BONUS RATIO | RECORD DATE |
|---|---|---|
| 21-07-2017 | 1:1 | 09-09-2017 |
| 07-10-2009 | 1:1 | 27-11-2009 |
| 13-09-1997 | 1:1 | 29-11-1997 |
| 28-10-1983 | 3:5 |
