Ambani Unveils Jio GigaFiber at 41st AGM, Analysts Take on Reliance’s Rs 28,900 cr Deals in 1 Year

- Advertisement -
- Advertisement -

Reliance Industries’ acquisitions have increased the company’s debts three-fold over five years as calculated till March 31, 2018

JioFibre, Reliance Industries, RIL, Annual General Meeting, AGM, 41st AGM, Mukesh Ambani, Reliance AGM, Reliance JioFibre
Image courtesy: Wikipedia

India’s richest man Mukesh Ambani, the chairman and managing director of Reliance Industries unveiled the quite-hyped ‘Jio GigaFiber’ at the 41st annual general meeting (AGM) on Thursday. At zero installation charges, Reliance will be offering the fibre-to-the-home (FTTH) broadband services to its users at a refundable security deposit of Rs 4,500 for the ONT device (GigaHub Home Gateway). As the AGM unfolds throughout the day, let’s take a look at what analysts have to say about the possible discussions.

Reliance Industries have signed US$ 53 billion deals in the last 12 months

- Advertisement -

Based on the calculations by Jefferies Group LLC and Bloomberg, Reliance Industries have signed at least 12 deals in the past one year worth an estimated Rs 28,900 crore. 10 of these agreements took place in the field of consumer business. Moreover, RIL also made deals with several indebted firms in the current bad-debt scenario that the entire country is experiencing by capitalising a textile-maker, carbon-fibre arm and a telecom company’s wireless wing.

Deven Choksey, managing director at Mumbai-based KR Choksey Shares and Securities said that most of these deals were an initiative to grab the content world. “If you can end up generating enough content, you can be reasonably sure that users will come on their network”

Being a typical telecom company, analysts are expecting that Ambani will discuss how he plans to further implement retail into his telecom background. Furthermore, discussions on how Reliance can clear e-commerce plans might open up possibilities for the company to drive the re-rating of the stock and brokerage CSLA as mentioned in the July 3 analysts report. Jefferies India analysts’ group headed by Somshankar Sinha found that RIL has committed US$ 1.3 billion in acquisition deals till March 31, 2019. Interestingly, these acquisitions, no matter how monetarily significant, exclude the deal with Rhea Retail Pvt Ltd. and a proposed Rs 17,300 crore deals with spectrum, fibre assets and mobile phone towers from Reliance Communications – RIL’s biggest transaction recently. In a nutshell, RIL has made a total of US$ 53 billion deals with several companies belonging to an array of backgrounds – petrochemicals, retail, real estate and not to forget telecom. Of these, telecom romped up the biggest deals accounting for US$ 36 billion. Evidently, RIL’s debts have increased by three times over the course of five years as counted at the end of March 2018.

Analysts express their views on RIL stock

According to Nischal Maheshwari, head of Institutional Equities at Edelweiss Securities said that with the competition in the telecom market that Reliance has brought, it is one stock that one needs to have in its portfolio for the upcoming three to five years. In the latest report by Edelweiss, it said that RIL has conducted commercialisation of several capex-heavy businesses like ROGC, RJIO and down-stream units and ethane project. Besides this, commissioning of pet coke gasification project is probably going to provide essential operating leverage benefits, the report added.

- Advertisement -

Related Artcles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

Ascend Performance Materials: Pioneering Innovation in the Electronics Sector

0
Bridging material advancements in plastics and technological progress, Ascend leads with customised solutions for a safer, reliable and greener tomorrow. Q. How would you explain...

DigiKey Expands Portfolio With 3PEAK

0
This collaboration adds amplifiers, interface components, data converters, and more, catering to industries such as communication, industrial, medical, and automotive.  In a strategic move aimed...

“Automotive And Medical Will Adopt More Printed Electronics”

0
The automotive industry is experiencing a revolution. But is this revolution limited to the evolution of powertrains? Salil Musale, MD, Naxona (Astarc Group), chats...

Buzz

Log9 Materials Partners With Zeta Energy To Innovate Advanced Battery Systems

0
The collaboration presents substantial advantages for both companies. Zeta Energy's sophisticated lithium-sulfur materials could enable Log9 to enhance overall cell performance, opening up new...

Tata, Shell To Deploy EV Charging Stations Across India

0
This partnership between two industry leaders is anticipated to significantly accelerate the advancement of India's electric vehicle (EV) sector into its next stage. Tata Passenger...

Vulcan Energy Begins Lithium Chloride Production In Germany

0
Listed in both Australia and Frankfurt, the company has secured offtake agreements with automakers such as Volkswagen, Stellantis, and Renault. It reported that its...

Important Sectors

Log9 Materials Partners With Zeta Energy To Innovate Advanced Battery Systems

0
The collaboration presents substantial advantages for both companies. Zeta Energy's sophisticated lithium-sulfur materials could enable Log9 to enhance overall cell performance, opening up new...

Tata, Shell To Deploy EV Charging Stations Across India

0
This partnership between two industry leaders is anticipated to significantly accelerate the advancement of India's electric vehicle (EV) sector into its next stage. Tata Passenger...

Vulcan Energy Begins Lithium Chloride Production In Germany

0
Listed in both Australia and Frankfurt, the company has secured offtake agreements with automakers such as Volkswagen, Stellantis, and Renault. It reported that its...

IESA & SEMI Collaborate To Advance India’s Semiconductor Aim

0
In a significant development that bodes well for the nation's semiconductor sector, the India Electronics and Semiconductor Association (IESA) established a strategic partnership with...

Tessolve And NXP Semiconductors Team Up For Connected Cluster

0
This partnership will deliver a flexible, user-friendly platform that enhances the user experience while prioritizing safety and efficiency. Tessolve has announced a strategic collaboration with...

Manufacturing

Log9 Materials Partners With Zeta Energy To Innovate Advanced Battery Systems

0
The collaboration presents substantial advantages for both companies. Zeta Energy's sophisticated lithium-sulfur materials could enable Log9 to enhance overall cell performance, opening up new...

Vulcan Energy Begins Lithium Chloride Production In Germany

0
Listed in both Australia and Frankfurt, the company has secured offtake agreements with automakers such as Volkswagen, Stellantis, and Renault. It reported that its...

Tessolve And NXP Semiconductors Team Up For Connected Cluster

0
This partnership will deliver a flexible, user-friendly platform that enhances the user experience while prioritizing safety and efficiency. Tessolve has announced a strategic collaboration with...

Tesla Starts Making Cars In Germany For India Exports This Year

0
A Tesla team is set to visit India this month to scout locations for a car manufacturing plant, with an estimated investment of around...
Sona Comstar

Sona Comstar Earns Second PLI Certification For Electric Two-Wheeler Hub Motor

0
In 2021, the government launched a five-year output-linked incentive scheme with a budget of Rs 25,938 crore to enhance local production of advanced automotive...