 "Jio Financial Services Limited")
Shares of Jio Financial Services jumped 4.8 per cent intraday at Rs 271.95 on Tuesday amid announcement of new broking and wealth management venture. The stock of the company had hit a 52-week high of Rs 378 on April 8, 2024, while it hit a 52-week low of Rs 204 on 24 October, 2023.
At 10:11 AM, the company’s share was trading 3.44 per cent higher at Rs 366.60. In comparison the S&P BSE Sensex was trading 0.49 per cent lower at 73,038 levels. A combined over 6.63 million shares of the company changed hands on the BSE.
The company led by Mukesh Ambani, on Monday announced that it intends to enter the stockbroking and wealth management sectors through a joint venture with US-based BlackRock. BlackRock, the world's largest asset manager, is also collaborating with Jio to establish an asset management business in India.
"BlackRock, Inc., and BlackRock Advisors Singapore Pte have entered into an agreement with the company to establish a 50:50 joint venture aimed at engaging in wealth management activities, which includes the formation of a wealth management firm and later the establishment of a brokerage company in India," Jio stated in an exchange filing.
The announcement coincides with the pending regulatory approval for their previous joint venture aimed at establishing a mutual fund (MF). This partnership, initiated in July 2023, aimed to enter India's mutual fund market valued at over Rs 50 trillion. Both firms had committed to investing $150 million each in the Indian asset management business.
In the October-December quarter of the financial year 2023-24, Jio Fin Services posted a net profit of Rs 293 crore, nearly half of the Rs 668 crore reported in the preceding quarter. Net interest income for the quarter stood at Rs 269 crore, with total interest income reaching Rs 414 crore. Total revenue amounted to Rs 413 crore in the third quarter.
