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Impact on shareholders of Reliance industries deal with REC Group

 Deal of Reliance Industries with Solar panel maker company REC Group:

India's largest company, Reliance Industries, is now planning to enter a new business. If media reports are to be seen, then Reliance Industries has shown its interest to buy Europe's solar panel company REC Group. According to sources, talks are going on with China National Chemical Corp Management for senior management team members of Reliance Industries. If this deal is finalized then it will be a very good thing for Reliance Industry. According to an estimate, Reliance Industries can give nearly $ 2 billion for this deal. The deal is in talks with Global Banks to raise up to $60 million. Reliance declined to talk about the deal for now. Later the remaining amount can be raised through equity. The company with which the deal is being done is REC Group, its head quarter is in Norway but this company is registered in Singapore.

If seen, this deal is going to be good for India, because India's dependence on China will also be reduced to meet the demand for solar energy products. Big countries like India & America are now encouraging local companies, if we talk about 2019, then one-third of the poly silicon used to make solar panels was coming from Xinjiang province of China. Talking about now, India's big business groups such as Adani Group and Reliance Industries have announced big manufacturing projects of Renew Power Business.

Few Questions of reliance industries investors:

  • What reliance industries shareholders should do after solar module maker deal with REC group from chemchina ?
  • Should you hold or sell reliance industries after solar panel maker deal with REC group from Chem. China ?
  • Should we buy or sell reliance industry share after solar every deal with REC Group from chem.. China?
  • Solar Panel maker deal with REC group is good or bad for Reliance industries?

Reliance industry is business leader:

 We should also mention that the company balance sheet of Reliance Industries is very strong and cash can be seen on the balance sheet of the company. In such a situation, if this deal happens, then no bad effect will be seen on the balance sheet of Reliance Industries. With this deal, Reliance Industry will enter a new business segment. We all know that in whatever business segment Reliance Industry enters, it always comes out as a leader. Recent examples of Reliance Jio Ever since the Reliance industry has entered the telecom sector, the price competition in the market have increased a lot. Has been observed. If this deal is finalized in the solar system segment of Reliance Industries, then it will not be wrong to say that Reliance Industries can launch quality products with advanced technology in Indian. And can become the business leader of the solar system segment. This will be a good thing for the Reliance Industry Shareholders. But now everyone should also wait for the finalization of the deal.

                       Impact on shareholders of Reliance industries deal with REC Group

Solar energy deal Impact on Reliance industries shareholders:

After this deal, a question must be coming in the minds of the shareholders of Reliance Industries that if the solar deal of Reliance Industries is finalized, then what will be the negative impact of this on the share price of Reliance. If we look from the business point of view, the company will have business expansion and the company will target the customers of one news segment. Solar energy sector is not so popular in India yet, according to a recent research, 90 gigawatt, renewable energy capacity is being produced in India. The Indian government has set an above target of 400GW by increasing its capacity by the year 2030. If we check the pass data, then from FY 2016 to FY 2021, CAGR of more than 15% has been registered in Renewable Energy Sector. Pressure is being seen on Reliance's stock today. It may also be that the shareholders of the Reliance industry are thinking that to buy a solar energy company, the near company will have to pay 2 billion dollars and the pressure of this is the balance of the Reliance industry will appear on the sheet. If we look from the long term point of view, so far this deal is looking good but if this deal gets finalized after that how will the demand for solar system products in India; it will be a big question.

Reliance Industries Balance Sheet:

 The management of Reliance Industry can be trusted in the world, Reliance Industry comes in Fortune 500 and if there is any biggest company in India then it belongs to Reliance Industry. Reliance has more than 468,000 core reserves lying on its balance sheet. As per experts calculation Reliance Industries has net zero debt balance.

Accordingly, there will be no difference in the balance sheet of the company and the benefits for the shareholders will remain in the long term. In the short term, the pressure on the stock can be seen that right now the big investors of the stock market will wait for the finalization of this deal and after that they will calculate how much profit the company is getting from this deal. Reliance Industries has always thought of the benefit of the shareholders of its company. This company was started by Shri Dhirubai Ambani ji and after that Shri Mukesh Ambani ji took the Reliance industry to even greater heights. Reliance Industries is in the hands of a strong management team and shareholders need not fear. Price movement in the company's stock is a part of the stock market.

In nutshell, we can say that until deal will not be confirmed by reliance industry management till then nothing is confirmed.  Reliance Industry shareholders should stay invested in the stock for long term.

Must read: Multibagger stock of mahindra group

Disclaimer: Above discussion on reliance industry deal, it is my personal view. Please do your own research before taking any buying or selling decision in this stock. My view may differ from other analysts.

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