Jio Financial Services to enter wealth management & broking industry, joins hands with BlackRock

Reliance Industries' financial services arm, Jio Financial Services, announced a joint venture with BlackRock, a global asset management company, through exchange filing. The company is also awaiting a licence from the Securities and Exchange Board of India (SEBI) for its asset management business.

Following the announcement, Jio Financial Services share rose nearly 5% in the morning trade, with a day high of ₹371.9 per share. The stock trades at ₹370.8 apiece as of 9:30 am.

Jio enters broking & wealth management

Jio Financial Services, a subsidiary of Reliance Industries, has decided to foray into the broking and wealth management business through a 50:50 joint venture (JV) with global asset management firm BlackRock.

Diversified business segments

The company has diversified financial services segments like non-banking financial services (NBFC), insurance broking, and payment bank business, with SBI having a 23% stake and payment aggregator. In addition to this, it also has an asset management business with a 50:50 JV with BlackRock and Industrial investments and holding under its purview.

Indian capital markets - sunrise industry

The Indian Capital market sector has seen exponential growth in the past few years, with demat accounts crossing 16.9 crore mark and mutual fund investors crossing nearly eight crore mark, making it one of the most vibrant and fast-growing industries in India.

With the 50:50 JV with Blackrock, Jio Financial Services for wealth management and broking business is a step further in strengthening their asset management business, which aims to transform India's asset management industry through a digital-first offering and democratise access to investment solutions for investors in India.

In the recent quarterly numbers, the net income for the company stood 32% lower than the previous quarter at ₹414 crore in Q3FY24. The net profit for the quarter came in at ₹87 crore for Q3FY24.