10 key takeaways from Reliance Group AGMs

NDTV Profit Desk

04 Sep 2012, 06:39 PM IST

Reliance Capital is in talks to sell a 26 per cent stake in its general insurance business.
Reliance Capital announced a special dividend for shareholders. The dividend, to be considered by the company's board on September 10, is being given for completion of 25 years of his group's financial services arm Reliance Capital.
The company’s life insurance unit will partner with banks for distribution of products while discussions are underway for Reliance Mutual Funds managing the funds of Japan’s Nippon Life, which is a strategic partner in Reliance Life and Reliance Asset Management Company.
Reliance Capital’s total income rose 21 per cent to Rs 6,627 crore last fiscal year while net profit rose 57 per cent to Rs 458 crore. The stock closed 3.4 per cent higher on the Bombay Stock Exchange at Rs 331.15.
Reliance Communications is committed to bring down its high debt. Its debt of Rs 35,000 crore is 10 per cent of the cumulative Rs 3.5 lakh crore debt of the entire telecom sector.
The company is looking to improve productivity as part of a four-step strategy to pare debt. Reliance Communications will monetize assets to increase revenue growth and improve profitability, and become the lowest cost-service provider.
It is looking to unlock value in Reliance Infratel, its wireless tower subsidiary. RCom sold a 5 per cent stake in the unit to international investors in July 2007. It is continuing to evaluate strategic options, including a sale or a listing, for the subsidiary.
The company still plans to list its overseas cable assets under a business trust structure on the Singapore Stock Exchange and will use its proceeds to repay debt.
Addressing the annual general meeting of Reliance Power, Mr. Ambani said the company will consider giving out its maiden dividend next year, even as he ruled out the merger of the company with Reliance Infrastructure, another group company.
He also announced the power unit's plans to invest Rs. 25,000 crore in hydro projects in Arunachal Pradesh and Uttarakhand by 2020. The company is planning two projects in each state.