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Jio Financial Services to finalize Deal of Rs 36,000 Crores with Reliance Retail Services

Jio Financial Services is going to make its first Step in leasing Business or Device-as-a-Service Daas Model. Reliance Industries Limited is on the track to finalize its deal worth of $ 4.33 Billion with Reliance Retail. 

Jio Financial Services to finalize Deal of Rs 36,000 Crores with Reliance Retail Services

"The monetary value of the transactions…is estimated to be Rs. 36,000 crore to be undertaken over FY2024-25 and FY2025...." 


Jio Financial Services is on the Track to Finalize Deal of Rs 36,000 Crores 

Jio Financial Services JSF is seeking shareholders' approval to buy $4.33 billion (INR 36,000 crores ) worth of telecom assets from a unit of Reliance Industries' leading subsidiary Jio Retail Services — a first step by Jio Financial Services into the leasing industry, the postal ballot notice from the Company Stated. 

Know, What is the Deal ? 

Jio Financial Services (JSF), a major subsidiary of Reliance, is asking its shareholders to approve a proposal to buy telecom assets worth Rs 36,000 crore from its unit Jio Retail Services.
The company also said that the Division of purchase of in financial year 2025 and 2026 will depend on the demand for services and the pace of deployment of broadband wireless equipment.

Voting of Shareholders on June 22 

Under this Giant Deal, Jio Financial services will buy routers and cell phones and then these routers and cell phones will be rented out to Reliance Jio Infocomm Customers. According to multiple reports, JFS shareholders will vote on this deal on June 22, after which, if approved, the deal is expected to be completed by the fiscal year 2025 and 2026.

Jio Financial Services will lease...

Jio Financial Services, run by Asia's richest man Mukesh Ambani, was separated from the Jio Group last year, in its earnings investor presentation JSF marked that that will now lease out services and products including AirFibre Wi-Fi services, phones and laptops and Many Other Services to Reliance' Subsidiary Jio Telecomm. 

The Ballot Document said that...

"RRL is in the business of dealing with devices and related equipment. JLSL will purchase customer premises equipment/devices and telecom equipment from RRL, which will be provided by JLSL on operating lease to the customers of Reliance Jio Infocomm Limited,” 
Marked the Entry of JFS in Leasing Business 

If this proposal gets approved, then this step can also be a gesture of Jio Financial Services entering the leasing industry. This move marks JFS's entry into the device leasing business. 

“The monetary value of the transactions….." 

“The monetary value of the transactions…is estimated to be Rs. 36,000 crore to be undertaken over FY2024-25 and FY2025-26. The split of purchases across the two years would depend on the uptake of services and pace of deployment of broadband wireless devices,”  Reliance Industries Limited marked. 

Tough Competition with... Lenovo and

Jio Financial Services may face tough competition in the device rental market, companies like Hewlett-Packard and Lenovo have already created their High Value in this market. But history is witness to the fact that Reliance makes a name for itself in whichever industry it enters.

Statement of the Company on this Giant Deal 

According to the BSE filing on 23 May 2023, Reliance Industries Limited (RIL) noticed in a postal ballot notice sent to shareholders asking for approval of the deal said that 

"Operating lease to the customers of Reliance..." 

"JLSL will purchase customer premises equipment/devices and telecom equipment from RRL, which will be provided by JLSL on operating lease to the customers of Reliance Jio Infocomm Limited,” 

"Assuming the total monetary value of Rs. 36,000 ....." 

"Assuming the total monetary value of Rs. 36,000 crore is split equally in FY2024-25 and FY2025-26 it represents: i. 970.94% of annual consolidated turnover of the Company for FY2023-24; and ii. JLSL did not have revenue from operations during FY2023-24. Accordingly, the percentage of its annual turnover is not applicable,” the document said. 

Entering in lease Business Via Daas 

"JLSL is entering into the business of operating lease via a Device-as-a-service (“DaaS”) model. DaaS is a new-age service model where businesses or individuals lease certain goods along with associated services, rather than purchasing the devices outright. DaaS typically includes installation, maintenance, support, and sometimes additional services like updates. 








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