Reliance Industries’ Jio Financial Services, on April 15, announced that it has entered into joint venture with US-based BlackRock for the expansion of wealth management and broking services in India.
In an exchange filing, the financial entity said it has signed a 50:50 joint venture focused on wealth management endeavors, which includes launching a wealth management company and subsequently establishing a brokerage firm in India.
“The Company, BlackRock, Inc. and BlackRock Advisors Singapore Pte. Ltd. today, at 6.35 p.m. have signed an agreement to form a 50:50 joint venture between the Company and Blackrock, for the purpose of undertaking wealth business including incorporation of a wealth management company and subsequent incorporation of a brokerage company in India,” the company said.
Reliance Industries’ financial arm had previously entered into an agreement with BlackRock in July 2023. Both parties agreed to invest $150 million each for a 50:50 joint venture, aiming to venture into the asset management sector in India.
The company further said that the joint venture will strengthen its relationship with BlackRock.
“This joint venture further strengthens the Company’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 and democratise access to investment solutions for investors in India,” the company further said.
However, the launch is contingent upon obtaining regulatory and statutory approvals.
Both the entities are also in anticipation of receiving approval for their mutual funds license from the market regulator, the Securities and Exchange Board of India (SEBI).
This development precedes its March quarter earnings, scheduled for Friday, April 19.
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Jio Financial reported a significant 56% sequential decline in consolidated net profit for the quarter ending December 2023, amounting to ₹294 crore. Moreover, consolidated revenue from operations dropped by nearly 32% from the preceding quarter, reaching ₹413.61 crore.
During the December quarter, total expenses amounted to ₹98.95 crore, marking an increase from ₹71.43 crore incurred in the September quarter.
The shares of Jio Financial Services closed around 4.57 per cent lower on Monday’s trading session at ₹355.20.
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Published: 15 Apr 2024, 09:20 PM IST