Jio Leasing Services Jio Financial Reliance Retail Equipment Deal Update | Jio Financial will start the business of providing goods on rent: For this, the company will buy devices worth ₹ 36,000 crore from Reliance Retail, sought approval from shareholders.

Jio Financial Services has sought approval from shareholders to buy devices worth ₹36,000 crore from Reliance Retail. According to news agency writers, the financial service provider company is planning to enter the device leasing business i.e. the business of giving goods on rent.

Under the proposed deal, the JFS unit named Jio Leasing Services will buy telecom equipment and other devices, which typically include routers and mobile phones. However, the company has not clearly stated which products it will purchase.

Company will provide devices on rent to customers
Jio Leasing Services will lease the purchased devices to Reliance Jio Infocomm customers. In this way, Jio Leasing Services will compete with companies like Hewlett Packard and Lenovo in the market of device rental companies.

According to the report, voting on the proposed deal will end on June 22 and the entire deal could be completed in the financial years of 2025 and 2026.

Jio Financial shares gave a return of 61.37% in 6 months
Shares of Jio Financial Services today closed at 365.25 with a decline of 0.68%. At the same time, the stock has given a negative return of 4.46% in the last 1 month. Whereas, in the last 6 months, Jio Financial shares have given positive returns of 61.37%.

Jio Financial Services’ net profit in the fourth quarter was ₹310 crore
Jio Financial Services’ net profit in Q4FY24 i.e. the fourth quarter of the financial year 2024 increased by 6% year-on-year to ₹ 310 crore. At the same time, the net interest income (NII) of non-banking financial company (NBFC) Jio Financial in the fourth quarter was Rs 280 crore. Whereas total interest income was Rs 418 crore and total revenue was Rs 418 crore.

Earlier, in the third quarter (October-December), Jio Financial’s net profit was Rs 293 crore. Whereas, in the third quarter (Q3FY24) the net interest income was Rs 269 crore. Whereas total interest income was Rs 414 crore and total revenue was Rs 413 crore.

JFS shares were listed on 21st August
The listing of Jio Financial Services Limited (JFS) took place on 21 August. It was listed at Rs 265 on BSE and Rs 262 on NSE. At the end of the trading day on July 19, all the shareholders who held shares of Reliance Industries got shares of Jio Financial in the ratio of 1:1. For example, if an investor held 100 shares of RIL, he was given 100 shares of JFS.

The company was separated from RIL in July
Reliance’s financial services business was separated from its parent company Reliance Industries Limited (RIL) in July. After demerger, the share price of Jio Financial was fixed at Rs 261.85 under the price discovery mechanism.