Jio Financial shares gain 5% after company announces Blackrock JV for wealth management

Jio Financial Services Ltd shares rose up to 5% on Tuesday after the company announced the formation of an equal joint venture with BlackRock to enter the broking and wealth management business.

Shares of the Reliance Industries’ financial services arm opened higher at ₹364.90 and gained a further 5% to hit a high of ₹371.95 per share on NSE.

More than 3.39 crore shares changed hands on NSE while the traded value was ₹1,246.01 crore.

Jio Financial Services shares are trading 2.5% up at ₹363.15 on NSE at 2.05 pm. Shares are trading nearly 4% lower from the a-year-high level of ₹378.85 hit on April 12, 2024. Jio shares are trading around 79% higher than the 52-week low of ₹202.80 hit on August 25, 2023.

Jio Financial Services forms 50:50 JV with BlackRock

Jio Financial Services announced that it has signed an agreement to form a 50:50 JV with Blackrock to undertake wealth business.

Jio Financial Services is also awaiting a licence from the Securities and Exchange Board of India (SEBI) for its asset management business.

Diversified business segments

Jio Financial Services has a diversified business portfolio which comprises non-banking financial services, insurance broking, and payment bank business. It also has an asset management business with a 50:50 JV with BlackRock and industrial investments and holding under its purview.

Wealth management JV

Jio Financial Services announced that it has signed an agreement to form a 50:50 JV with Blackrock to undertake wealth management business. A wealth management company will be incorporated followed by a brokerage company in India.

This joint venture further strengthens Jio’s relationship with Blackrock, Inc., with whom the company had announced a 50:50 joint venture on July 26, 2023, to transform India’s asset management industry through a digital-first offering.

The launch of the wealth management and broking business is subject to regulatory and statutory approvals.