Jio Financial Services aims to buy Rs 36,000 crore telecom gear from Reliance Retail, eyeing entry into device leasing in competition with HP and Lenovo.
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Brief note on Jio financial’s strategic move with reliance retail:
- Jio Leasing Services, a subsidiary of jio financial services will acquire telecom equipment and devices from Reliance retail
- Jio Leasing Services aims to enter the operating lease business via Device-as-a-service (DaaS) model in direct competition with HP & Lenovo
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“Jio Leasing Services 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,” according to a postal ballot notice to shareholders by Jio financial services limited.
In this model, companies and individuals lease products together with related services rather than purchasing them entirely. Installation, upkeep, support, and occasionally upgrades are included with these services.
Equipment and related devices are the business of Reliance Retail Limited (RRL). Jio Leasing Services will purchase customer premises equipment/devices and telecom equipment from RRL and provide them on operating lease to Reliance Jio Infocomm Limited customers.
Over the course of the fiscal years 2024–2025 and 2025–2026, the expected total value of these transactions is Rs 36,000 crore. The demand for services and the rate at which broadband wireless devices are being deployed will determine how purchases are divided over the next two years.
On 23rd MAy, 2024, Jio financial services said that the company wants shareholder’s approval for Foreign investments (including foreign portfolio investments) in the equity share capital of the Company upto 49%.
Jio financial services has informed about two major updates:
- The Holding Company and BlackRock Inc. (‘BlackRock’) have agreed to form a Joint Venture to enter India’s Asset Management Industry. Accordingly, the Holding Company and BlackRock made an application to Securities and Exchange Board of India on October 19, 2023, seeking approval for the Holding Company and BlackRock Financial Management, Inc to act as Co-sponsors of a Mutual Fund.
- The Company, BlackRock Inc. and BlackRock Advisors Singapore Pie.Ltd have signed an agreement on April 15, 2024 to form a 50:50 joint venture for the purpose of undertaking wealth business including incorporation of a wealth management company and subsequent incorporation of a brokerage Company in India.
The numbers you should know about Jio Financial Services:
| CMP | 365.40 |
| 52 Week High/Low | 395/203 |
| Stock PE | 145 |
| ROE | 1.27% |
| ROCE | 1.55% |
| Debt to Equity ratio | 0.0% |
| Promoter holding / pledged percentage | 47.12% / 0.0% |
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