Jio Financial Services Limited (JFSL) and its joint venture partner BlackRock have invested Rs 117 crore to strengthen their presence in the mutual fund business. This investment has been made in Jio BlackRock Asset Management Private Limited, which is a 50:50 joint venture between JFSL and BlackRock.
Investment of Rs 117 crore in mutual fund
JFSL and BlackRock have purchased 5.85 crore equity shares of Jio BlackRock Asset Management Private Limited.
- Share Price: Rs 10 per share.
- Total Value: Rs 117 crore.
- Current Status: The allotment of shares has been completed.
The company has also applied for approval of its investment from capital market regulator SEBI. This move is an important step towards Jio BlackRock’s strong presence in the mutual fund market in India.
Joint venture between Jio Financial and BlackRock
Jio BlackRock Asset Management Private Limited is a joint venture between JFSL and BlackRock.
- initial investment: Both the companies had made an initial investment of Rs 82.5 crore.
- This is part of JFSL’s strategy to build a major presence in the mutual fund business.
JFSL is the financial services unit of Reliance Industries Limited, which was listed on the stock exchange in August 2023.
Jio Blackrock Broking Pvt Ltd launched
On January 20, 2025, JFSL’s joint venture subsidiary Jio BlackRock Investment Advisors Pvt Ltd incorporated a wholly owned subsidiary named ‘Jio BlackRock Broking Pvt Ltd’.
- Objective: To expand broking business.
- Regulatory Status: The regulatory approval process for this subsidiary is still pending.
December 2024 quarter: Jio Financial’s performance
1. Net profit remained flat
Jio Financial Services saw no major change in net consolidated profits during the October-December 2024 quarter.
- Profit: Rs 294.78 crore.
- A year ago: Rs 293.82 crore.
2. Increase in total income
There was a slight increase in the total consolidated income of the company.
- December 2024 quarter: Rs 448.89 crore.
- December 2023 quarter: Rs 414.33 crore.
3. Revenue from operations
- Revenue: Rs 438.35 crore (6% more than last year).
- Last year: Rs 413.61 crore.
4. Increasing expenses and decreasing interest income
- Total Expenses: 32% increase to Rs 130.75 crore.
- Last year: Rs 98.95 crore.
- interest income: Rs 210.07 crore with a decrease of 22%.
- December 2023 quarter: Rs 269.08 crore.
the way forward
This investment by Jio Financial Services and BlackRock is a big start in India’s mutual fund market. JFSL’s expansion into broking and asset management is part of its long-term strategy. However, the company is also facing challenges like increasing expenses and declining interest income.
Tips for Investors:
- Keep track of company’s financial status and new initiatives.
- Growth in mutual fund business could prove beneficial for JFSL in the long run.
- It is important to pay attention to the regulatory approval status of the broking business.
