Jio Financial’s Massive Retail Deal
Jio Financial Services (JFS) is seeking approval from shareholders for its subsidiary to procure equipment valued at 360 billion rupees ($4.33 billion) from the retail division of Reliance Industries. The aim is for the financial services provider to venture into the device leasing sector, according to a postal ballot notice.
In the proposed arrangement, the JFS subsidiary, named Jio Leasing Services, will acquire telecommunications equipment and devices, including routers and cell phones.
Additionally, the JFS subsidiary plans to lease out the acquired equipment to customers of Reliance Jio Infocomm, the telecommunications arm of Reliance Industries, as stated by the financial services company.
Jio Financial, established as a separate entity from the Reliance Group led by billionaire Mukesh Ambani last year, had previously indicated in its earnings investor presentation its intention to offer leasing services for various products, including Jio Infocomm’s AirFiber wifi services, phones, and laptops.
This move positions the company to compete in the device rental market alongside established players like Hewlett-Packard and Lenovo.
Voting on the proposed items in the notice will conclude on June 22. The deal is anticipated to be finalized during the financial years 2025 and 2026.
