People stand next to a logo of Jio Financial Services
Credit: Reuters Photo
Bengaluru: Jio Financial Services (JFS) is seeking shareholder approval for its unit to acquire equipment worth 360 billion rupees ($4.33 billion) from the retail arm of Reliance Industries as the financial services provider plans to enter the device leasing business, a postal ballot notice said.
Under the proposed deal, the JFS unit called Jio Leasing Services will buy telecom equipment and devices that usually include routers and cell phones.
Jio Financial, spun out of billionaire Mukesh Ambani-led Reliance Group last year, did not specify which products it was purchasing in the notice dated March 18.
Jio Leasing Services will rent out the equipment it buys to customers of Reliance Jio Infocomm - Reliance's telecommunications arm - the financial services company further said.
This company will compete in the device-rental market with the likes of Hewlett Packard and Lenovo.
Voting on proposed items in the notice ends on June 22. The deal is expected to go through in the financial years 2025 and 2026.
($1 = 83.1284 Indian rupees)