Earlier this month, the Securities and Exchange Board of India (SEBI) granted approval for Jio Financial Services’ joint venture with BlackRock to enter the mutual fund sector in India. In an exchange filing on Friday, Jio Financial Services announced its partnership with BlackRock Inc., the world’s largest asset manager, to establish a presence in India’s asset management industry. The collaboration includes an application to SEBI, set for submission on October 19, 2023, to act as co-sponsors for a mutual fund.
After receiving in-principle approval from SEBI on October 3, 2024, Jio and BlackRock are moving forward with their plans, pending the completion of regulatory requirements for final registration.
Over a year ago, Jio Financial Services announced its partnership with BlackRock to venture into the Indian asset management sector. On April 15, 2024, the two firms formalized a 50:50 joint venture agreement to co-sponsor a mutual fund, officially launching Jio BlackRock Investment Advisers Private Limited on September 6, with a focus on providing investment advisory services. However, final regulatory approvals are still in progress.
This marks the third collaboration between BlackRock and Jio, owned by Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited. Previously, the two companies partnered to initiate asset management and stock broking operations in India.
SEBI’s October 3 announcement indicated that final registration approval would be granted to Jio Financial Services and BlackRock, contingent upon fulfilling specific requirements outlined in the regulatory letter to the company.
In its latest exchange filing, Jio Financial Services (JFS) Ltd reported a 3.13% year-on-year increase in net profit for the second quarter of the financial year 2024-25 (Q2 FY25), amounting to Rs 668.18 crore, compared to the same period last year. The company also saw a 14.06% year-on-year growth in revenue from operations, reaching Rs 693.50 crore in Q2 FY25, up from Rs 608.04 crore in the corresponding quarter of the previous fiscal year. As of September 2024, Jio Financial’s net worth stood at Rs 1,37,144 crore.
Shareholders currently hold 47.12% of the non-banking finance company (NBFC). Jio Financial’s stock is trading at a price-to-equity (P/E) ratio of 677.49 a price-to-book (P/B) value of 8.56, with an earnings per share (EPS) of 0.49 and a return on equity (RoE) of 1.26.
Disclaimer: The information provided in this document is for informational purposes only and does not constitute financial advice, endorsement, or recommendation. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions. The partnership between Jio Financial Services and BlackRock, as well as the details regarding their mutual fund venture, are subject to regulatory approvals and market conditions. Past performance is not indicative of future results.
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