Jio Financial Services, the financial subsidiary of Reliance Industries, saw a significant 5% surge in today’s intraday session, reaching ₹371.95 per share. This increase comes after the company’s announcement of a 50:50 joint venture with BlackRock, aimed at establishing a wealth management company and brokerage firm in India.
The company stated, “This joint venture strengthens the Company’s relationship with Blackrock, Inc., with whom the Company had previously announced a joint venture to transform India’s asset management industry.” The launch of the wealth management and broking business is pending regulatory approvals.
The wealth management sector in India is growing rapidly, driven by the rise in demat accounts. India’s wealth managers currently oversee around $1–1.2 trillion in financial assets, with projections indicating a rise in high-net-worth individuals and ultra-high-net-worth individuals in the country.
In July 2023, Jio Financial Services and BlackRock announced a joint venture with a USD 150 million investment each to enter the asset management sector. The company has applied for a mutual fund license with the Securities and Exchange Board of India (Sebi).
Jio Financial Services operates as a non-deposit-taking, non-banking financial company, offering retail lending, merchant lending, payments solutions, and insurance broking. The company targets diverse customer segments in urban, semi-urban, and rural areas of India.
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Published: 16 Apr 2024, 10:11 AM IST