Reliance Industries Ltd shareholders have approved the $4.3 billion deal between its subsidiaries, Jio Financial Services and Reliance Retail. The deal involves Jio Financial acquiring equipment worth ₹360 billion (approximately $4.3 billion) from Reliance Retail. This move is aimed at facilitating JFS’s entry into the device leasing business.
Reliance Industries shareholders have approved the $4.3 billion deal between its subsidiaries, Jio Financial Services and Reliance Retail.
The deal will allow Jio Financial to acquire equipment, devices, and telecom infrastructure from Reliance Retail. Enabling Jio Financial to venture into the device leasing market.
Jio Financial Services Ltd subsidiary, Jio Leasing Services, will be responsible for acquiring customer premises equipment, devices, and telecom equipment such as routers and cell phones.
JFS has reported strong financial performance, with a multi-fold increase in net profit for the fiscal year 2023-24. This has contributed to positive investor sentiment around the company.
The Jio Financial is also making strides in other areas, including a joint venture with BlackRock for asset management and plans for a mutual fund business.
This deal between JFS and Reliance Retail marks a significant development in the Indian financial services and retail sectors. It positions Jio Financial for growth in the device leasing market while leveraging the extensive reach and resources of Reliance Retail.