Jio Financial Services share price drops after ₹117 crore infusion in mutual fund business with BlackRock

The stock declined 0.56% to ₹258.65 apiece on the National Stock Exchange (NSE) at 11:40 am.

In the exchange filing on Wednesday, Jio Financial said, "The company and BlackRock have each, today, further subscribed to and have been allotted 5.85 crore equity shares of ₹10/- each of Jio BlackRock Asset Management Private Limited (a 50:50 Joint Venture between the company and BlackRock), for cash at par, aggregating ₹117.00 crore."

Jio BlackRock Asset Management Pvt Ltd submitted an application to the market regulator, the Securities and Exchange Board of India (SEBI), seeking approval.

Jio Financial and BlackRock had initially invested ₹82.5 crore each in this entity.

In a separate regulatory filing, the company informed that another subsidiary Jio BlackRock Investment Advisers Private Ltd, also a JV, has setup a wholly owned subsidiary 'Jio BlackRock Broking Private Limited' on Tuesday, January 20, to carry out broking business, subject to regulatory approvals.

Jio Financial Services posts flat Q3 net profit

Jio Financial Services' consolidated net profit remained flat at ₹295 crore in the latest third quarter, compared to ₹294 crore in the corresponding period last fiscal.

Total income stood at ₹449 crore in the reporting quarter, up from ₹414 crore in Q3 FY24. Total expenses increased to ₹131 crore against ₹99 crore in the year-ago period.

For the nine-month period of the financial year 2024-25, the company's net profit rose marginally to ₹1,296 crore compared to ₹1,294 crore a year back.

Jio Financial Services Ltd is involved in investment and financing, payment banking, insurance broking, payment gateway services and payment aggregation.