RIL shares in focus as August 28 fixed as AGM date; Jio Financial Services listing soon

Shares of Reliance Industries Ltd (Ltd) will be in focus on Monday morning as the oil-to-telecom major while announcing its FTY23 annual report fixed August 28 as the date for annual general meeting date (AGM). RIL has sought approval from its shareholders to extend Mukesh Ambani's tenure as Chairman and Managing Director for another five years, until 2029. Besides, it said the equity shares of Jio Financial Services (erstwhile RSIL) are expected to be listed soon.

In its annual report, RIL said its demerged financial services arm Reliance Jio Financial Services is expected to unlock value for shareholders and "give them an opportunity to be a part of a new growth platform."

In the special resolution posted to shareholders, Reliance said its Board of Directors on July 21 approved re-appointed Mukesh Ambani as Managing Director for a period of 5 years from the expiry of his present term, i.e. with effect from April 19, 2024. Ambani will cross the company law-mandated age of 70 during his proposed term, necessitating a special resolution by the shareholders for his appointment beyond that age bar. The resolution also states that Ambani will be entitled to reimbursement of expenses incurred for travelling, boarding, and lodging during business trips, including for his spouse and attendants. The company will also provide security for Ambani and his family members, with the expenses borne by the company not considered as perquisites.

The stock would also be in focus as RIL's telecom arm Jio Infocomm tied up $2.2 billion in funding from Swedish Export Credit Agency (EKN) in the last financial year to buy 5G equipment, the company said on Sunday. During FY23, Reliance and its subsidiary Jio Infocomm Limited (JIL) tied up $3 billion equivalent through syndicated term loan facilities, the conglomerate said in its annual report FY23. The transaction was heavily oversubscribed in the primary syndication market by global lenders across geographies, Reliance said, adding that the proceeds from the loans were used to meet the capital expenditure requirements of both companies.

"RJIL tied up its first ever Swedish Export Credit Agency (EKN) supported facilities of $2.2 billion equivalent making it the largest cover ever provided by EKN for a deal to a private corporate globally," Reliance Industries said, adding that the proceeds of the facilities shall be utilised to finance the equipment and services in relation to JIL's pan-India 5G roll out.

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