Reliance Industries Financial Services arm, Jio Financial Services (JFS) has seen a surge in its share price by up to 5% on Tuesday following the revelation of a significant partnership with global investment giant BlackRock. The Joint Venture (JV) is carrying the business purpose of Wealth Management and Broking Services.
JFS’ Ongoing Partnership with BlackRock
The company, in its stock exchange filing, stated that, “This JV further strengthens the company’s relationship with BlackRock Inc”. The collaboration follows the previous 50:50 JV announced on July 26th, 2023, which aims to revolutionise India’s Asset Management Industry by providing digital-first investment solutions.
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Regulatory Hurdles
Furthermore, success in setting up a wealth management and broking business is subject to the approval of regulatory authorities. However, once operational, the newly formed JV is set to encounter competition from wealth management banks as well as BNP Paribas Wealth Management, 360 One, Nuvama, Avendus and others.
Anticipation Surrounding Q4 Earnings
Interestingly, the JV announcement precedes the eagerly awaited Q4FY24 results scheduled for April 19th 2024 , enhancing anticipation regarding Jio Financial Services’ future financial performance. In the preceding quarter, the Mukesh Ambani-led company reported a significant 56% decline in consolidated net profit totalling INR 294 Cr. The consolidated revenue from operation also experienced a substantial dip of nearly 32% compared to the previous quarter amounting to INR 413.61 Cr.
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Market Cap of JFS
Jio Financial Services made a Stock Market Debut in August 2023 with a market capitalisation surpassing INR 1.5 Lac Cr. Since then, the company has witnessed substantial growth, with its market capitalisation surpassing the INR 2.30 Lac Cr mark in the latest trading session.
