How Reliance stock performed on AGM day in last 5 years

Reliance AGM: RIL chairman Mukesh Ambani is expected to announce several key initiatives and talk about the company's deals at the 44th annual general meeting. The stocks of RIL have given mixed reaction to AGM announcement in the past years.

The annual general meeting (AGM) of Reliance Industries Limited (RIL) is one of the keenly-watched events among the business communities. The event not only sheds light not the company’s performance in the year gone by, but also sheds light on its plans for the future.

Reliance Industries became a debt-free company last year. (Reuters File Photo)

The investors too bet big on the Reliance AGM to get an in-depth understanding about the finances being utilised by the company.

Several key initiatives are expected to be announced by RIL chairman Mukesh Ambani, including a potential 20% stake sale to Saudi Aramco in the company’s oil-to-chemicals business (the deal is expected to be $75 billion), and the much-awaited 5G rollout plan.

As the day of the Reliance AGM approaches, the markets start watching for the share price of the RIL, which react to the announcement being made.

“Over the last 10 years, in the week and month post the AGM, the stock has outperformed the Nifty 6/10 and 7/10 times, potentially implying that the (AGM) speech has managed to give more confidence to consensus,” said HSBC in its report, adding that over the past 10 years, it has seen an average surge of 140% in trading value on its AGM day against the volume traded just a month previously.

In 2020, the AGM was held on July 15 where Mukesh Ambani announced a deal with Saudi Aramco, partnership with Google in Jio platforms, expanding Jio Mart and the aim of making RIL carbon free by 2035. On that day, RIL’s stock went down 3.71%.

In 2019, the company’s stocks surged almost 10% on the back of Ambani’s announcement of ₹3.5 lakh crore to create digital infrastructure across India and commercial launch of JioFiber.

The announcements made in 2018 saw the company’s stocks dip by 2.53 per cent. In 2017, the stocks were in green (+3.76%) on the day of the AGM.

In 2016, the RIL stocks went down by 2.73% on the day of the AGM.