Jio Financial Services Ltd (JFS) is attracting significant attention on the stock market following its announcement of a new joint venture with BlackRock Advisors Singapore. The venture, named Jio BlackRock Investment Advisers Private Limited, aims to provide investment advisory services.
The company disclosed that it will invest Rs 3 crore for an initial subscription of 30,00,000 equity shares, each with a face value of Rs 10. The certificate of incorporation for the joint venture was issued by the Ministry of Corporate Affairs on September 7. Notably, this transaction does not involve related party transactions, and there are no interests from promoters or related group companies.
The formation of this joint venture has been made without requiring additional governmental or regulatory approvals, according to Jio Financial Services.
Despite the recent focus on JFS, its stock has experienced a 3.6 percent decline over the past three months. This contrasts with an 8.14 percent increase in the BSE Sensex during the same period. However, the stock has gained 44 percent year-to-date, outperforming the Sensex’s 12.3 percent rise.
In July, the Reserve Bank of India (RBI) approved Jio Financial Services’ transition from a systemically important non-deposit-taking NBFC to a core investment company (CIC). This move is expected to enhance the company’s financial operations and stability.
JFS operates its financial services through various subsidiaries, including Jio Finance Limited (JFL), Jio Insurance Broking Limited (JIBL), and Jio Payment Solutions Limited (JPSL). It also has a joint venture with Jio Payments Bank Limited (JPBL).
Originally incorporated as Reliance Strategic Investments Private Limited on July 22, 1999, the company underwent several name changes. It became Reliance Strategic Investments Limited on January 14, 2002, and was later rebranded to Jio Financial Services Limited with a new certificate of incorporation issued on July 25, 2023.
The establishment of this joint venture with BlackRock highlights Jio Financial Services’ ongoing efforts to expand its financial advisory capabilities and enhance its market presence.
