Brokerages bullish on RIL post Aramco deal buzz, Jio’s commercial launch

The announcements saw the stock rally over 8 per cent in intra-day trade on the National Stock Exchange (NSE) to Rs 1,257 levels on Tuesday

From a possible deal with Saudi Aramco for a 20 per cent stake in the company’s oil-to-chemicals (O2C) business segment and the commercial launch of Jio GigaFiber on September 5, the slew of announcements made by Reliance Industries’ chairman Mukesh Ambani in its 42nd annual general meeting (AGM) on Monday have been taken positively by brokerages, who now maintain a ‘buy’ rating on the stock from a 12-month perspective.

The announcements saw the stock rally over 8 per cent in intra-day trade on the National Stock Exchange (NSE) to Rs 1,257 levels on Tuesday.

Here’s how leading brokerages have interpreted the statements:

JEFFERIES

We like this clear intent to lighten the balance-sheet even if the central plank for now is Aramco picking up a non-voting instrument that will give it a 20 per cent economic interest in its refining & petrochem (O2C) business. In return, Aramco will also get a board seat at Reliance and has also assured 0.5mbpd of oil supplies at market prices. For Reliance, though, this complex structure prevents a ring-fencing of O2C cashflow until it is transferred to an SPV in about five year…

JioPhone 2, Jio GigaFibre, Jio GigaTV announced: Things you need to know

Mukesh Ambani said upgraded JioPhones will have social media applications such as YouTube and Facebook, along with instant messaging service Whatsapp.

 

phone features in-build FM, NFC, GPS and Wi-Fi. The JioPhone 2 will also have access to social media applications such as YouTube and Facebook, along with instant messaging service WhatsApp. The phone will be available starting from August 15 at an introductory price of Rs 2,999.

Jio GigaFibre

After running trials at select cities, Mukesh Ambani on Thursday announced Jio’s fixed-line broadband services, which would be launched in 1,100 cities simultaneously for homes, merchants and small and medium enterprises and large enterprises. According to the company, Jio GigaFibre services would offer internet speed of up to one gigabyte per second (Gbps). The company did not announce the launch date or plans, but interested users can register their interest for Jio GigaFibre services on Jio web portal starting August 15. The locality that shows major interest would be among the first locations to get Jio’s home broadband services, according to Mukesh Ambani.

Jio GigaTV

Jio’s digital television content services is a part of GigaFibre internet services. The GigaTV set-top-box would offer internet-based digital content services, along with access to Jio’s app suite. Interestingly, the set-top-box would also support a video calling feature, which would allow users to make video calls from their televisions. It is still to be seen how the feature would work as the televisions currently does not support camera, in-build or external. The GigaTV remote would be voice-enabled, which would make it work with voice commands – something similar to how the Amazon’s Fire Stick remote works.

READ MORE ABOUT ON JIO PHONE  2 

RIL 41st Annual General Meeting today: Key announcements of last 3 editions

As India awaits for this year’s announcements, here are the major announcements that Mukesh Ambani made in last three AGMs

 

Reliance Industries will hold its 41st annual general meeting (AGM) on Thursday.

In the past few years, the company’s chairman, Mukesh Ambani, has used the occasion to make major announcements. This year too the expectations are high.

Here’s what happened in the previous years

2017:

JioPhone launch: Mukesh Ambani announced the launch of the ‘effectively free’ JioPhone in India. The phone is sold at a refundable deposit of Rs 1,500.

Success of Jio: According to the company, Jio’s subscriber base crossed 100 million in less than 170 days from the launch date. Ambani said Jio helped data consumption rise from 200 million GB to 1.2 billion GB in India.

The company had also announced that Jio services would cover 99 per cent of India’s population in 12 months.

2016:

The launch of Reliance Jio dominated the AGM in 2016. Mukesh Ambani announced a slew of attractive schemes along with the launch of 4G telecom. The highlights were 4G devices from Rs 2,999, cheap data plans, unlimited night-time 4G connection and free Jio-to-Jio voice calls, among others.

The project, pegged at Rs 1.5 trillion, saw a soft-launch in December 2015, when RIL offered mobile connections and discounted handsets to its over 100,000 employees.

Ambani also announced new Lyf devices with prices starting at Rs 2,999 and going up to Rs 5,999. The AGM also saw the launch of 4G LTE JioFi router at 1,999.

2015:

It was in 2015, that Mukesh Ambani first announced the launch of Reliance Jio. He also announced ambitious plans to expand the company’s retail business, saying that the company will expand its network from 200 outlets to 900 outlets over the next year.

Ambani also said Reliance will roll out an e-commerce model that will integrate online and offline retail.

Read More : Reliance AGM