Jio Finance announced in an exchange filing on Friday about its partnership with Blackrock Inc, the world’s largest asset manager, to venture into India’s asset management industry. The collaboration includes submitting an application to SEBI on October 19, 2023, to be co-sponsors for a mutual fund.
After receiving in-principle approval from SEBI on October 3, 2024, Jio and BlackRock are progressing with their plans, subject to meeting regulatory requirements for final registration.
Jio Financial Services announced over a year ago its partnership with a global investment powerhouse to venture into the Indian asset management sector. On April 15, 2024, Jio, BlackRock, Inc., and BlackRock Advisors Singapore Pte. Ltd. formalised a 50:50 joint venture agreement to co-sponsor a Mutual Fund.
Jio BlackRock Investment Advisers Private Limited commenced its operations on September 6, with a primary focus on delivering investment advisory services. However, regulatory approvals are still awaiting completion.
The third partnership between BlackRock and Jio, owned by Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited. Previously, the two firms joined forces to launch asset management and stock broking operations in India.
On October 3, 2024, it was announced that Sebi will grant final registration approval to Jio Financial and BlackRock, pending the fulfillment of requirements detailed in the regulatory letter to the company.
“Please note that Securities and Exchange Board of India (SEBI) vide letter dated October 3, 2024, has granted in-principle approval to the Company and BlackRock Financial Management Inc (“BlackRock”) to act as co-sponsors and set up the proposed mutual fund. The final approval for registration will be granted by SEBI subject to fulfillment by the Company and BlackRock of the requirements set out in the said letter,” Jio Financial said in exchange filing on Friday.
Jio Financial Services (JFS) Ltd announced a 3.13% increase in second-quarter net profit for the financial year 2024-25 (Q2 FY25) compared to the same period last year. The company’s net profit for Q2 FY25 was Rs 668.18 crore, up from Rs 668.18 crore in the previous year.
Additionally, Jio Financial Services reported a 14.06% year-on-year growth in revenue from operations, totaling Rs 693.50 crore in Q2 FY25. This is a significant increase from the Rs 608.04 crore recorded in the corresponding period of the previous fiscal year. As of September this year, the company’s net worth stands at Rs 1,37,144 crore.
As of September 2024, shareholders owned 47.12% of the non-banking finance company (NBFC). Jio Financial’s stock has a price-to-equity (P/E) ratio of 677.49 and a price-to-book (P/B) value of 8.56. Earnings per share (EPS) were 0.49 with a return on equity (RoE) of 1.26.
