Reliance Industries (RIL) investors remained largely unfazed by the company’s proposal to hive off the oil-to-chemical (O2C) business into a 100 per cent subsidiary of RIL as most had anticipated the move. Shares of RIL closed 0.8 per cent higher on the BSE on Tuesday, having rallied 2 per cent at the bourses in the intra-day trade. Yet, the latest announcement, RIL s focus on new energy and net materials business (dedicated towards development of a green energy ecosystem) and gradually improving outlook for O2C vertical could provide triggers for the stock going ahead. Late on Monday, RIL said it has initiated the process of reorganisation of O2C business into a new subsidiary, which is expected to complete by Q2FY22. As per the proposal, RIL will transfer its refining and petrochemicals businesses along with fuel marketing joint venture (RIL holds 51 per cent) with BP, elastomer joint venture (74.9 per cent) with Sibur, Recron/RP Chemicals Malaysia, trading subsidiaries,
Shares of billionaire Mukesh Ambani s Reliance Industries (RIL) rose 2 per cent to hit an intra-day high of Rs 2,048.70 on the BSE after the company said it has begun the process of carving out the O2C business into an independent subsidiary and expects to get the necessary approvals for the same by the second quarter of the next financial year.
The company said the O2C business will be turned into a separate entity that will be 100 per cent owned by RIL and will result in no change in the company s shareholding.
It further added that it will focus on new energy and new materials business “towards its vision of clean and green energy development.” RIL plans to go net carbon zero by 2035.
PE/VC sector saw investments worth $47.6 billion in 2020
January 28, 2021
One of the biggest reasons for the decline in PE/VC investments in 2020 is the under-performance of the infrastructure and real estate sectors - istock.com/marchmeena29
One of the biggest reasons for the decline in PE/VC investments in 2020 is the under-performance of the infrastructure and real estate sectors - istock.com/marchmeena29×
It was led by fund-raising by Reliance Group entities
The private equity and venture capital (PE/VC) sector recorded investments worth $47.6 billion across 921 deals in 2020, almost at par with the previous year, led by fund-raising by Reliance Group entities. Exits stood at $6 billion across 151 deals with open market exits accounting for 40 per cent of all deals by value.
Google updates Play Store policies on gamified loyalty programs following confusion in India
Google has updated and broadened its Play Store policy on gaming loyalty programs to help developers better understand the practices that are permitted, months after confusion about the guidance prompted some backlash in India, the biggest Android market by users.
The company said on Thursday that it now specifies guidance on gamified loyalty programs that are based on a qualified monetary transaction in an app and offer prizes of cash or other real-world cash equivalent perks.
Scores of apps run gamified loyalty programs in their apps to appease and win users. Last year, the company sent notices to several Indian startups including Paytm, Zomato, and Swiggy whose in-app gamifying techniques, the company said at the time, resembled gambling. Google had asked the firms to withdraw from engaging in such gamifying techniques. The new policy covers developers worldwide, the company said.
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The key concern for the market has been the Reliance margins as well as the slowdown in growth in some of the key segments like the retail and Jio businesses, says
MOFSL.
What do you make of RIL’s earnings, especially the performance of Jio and retail businesses? Also, how have you looked at their new style of reporting earnings?
On a consolidated basis, Reliance numbers were marginally below expectations. On a consolidated basis, EBITDA was down 5% and on a year-on-year basis, that was stark. EBITDA was down 33% on a standalone basis on a year-on-year basis. The key disappointment in terms of the Jio as well as Reliance Retail is that growth has slowed down in Reliance Jio to about 6% in terms of revenue on a quarter on quarter basis while the retail net revenues were down 9%. And to add to it, they also changed their reporting structure that led to lower taxes outgo which finally led to some solace for Reliance in terms of the net profit being better than expecte