Jio Financial Services announced an agreement with BlackRock Inc. and BlackRock Advisors Singapore Pte. Ltd. to establish a 50:50 joint venture. The aim is to launch wealth management and broking services, as disclosed by the company in its filing to the exchanges on Monday.
The joint venture agreement will also involve setting up a wealth management company and a brokerage firm in India.
“This joint venture further strengthens the company’s relationship with BlackRock, Inc., with whom it 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 filing said.
Jio Financial Services Ltd, the separate financial services division of Mukesh Ambani’s Reliance, and BlackRock had previously announced a deal in July 2023. They agreed to form a 50:50 joint venture with a $150 million investment each to enter India’s asset management sector.
This announcement comes just before its March quarter earnings, scheduled for Friday, April 19. In the previous quarter, which ended in December 2023, the Mukesh Ambani-owned company saw a 56% sequential decline in consolidated net profit, dropping to Rs 294 crore. Additionally, consolidated revenue from operations fell by almost 32% from the previous quarter to Rs 413.61 crore.
In the December quarter, total expenses amounted to Rs 98.95 crore, up from Rs 71.43 crore in the September quarter. The total tax paid for the quarter was Rs 88 crore, slightly higher than the Rs 86.3 crore paid in the previous quarter.
On Monday, shares of Jio Financial Services were priced at Rs 354.40 each, marking a 4.82% decrease.
