Jio Financial Services Up 5% Following BlackRock Partnership
After Jio Financial Services announced a collaborative venture with US-based BlackRock, the stock rose 5% to an intraday high of Rs 371.95. The value of Jio shares has increased by 64% in the last six months. Notably, from November 2023 to March 2024, Jio continuously produced positive monthly returns. In August 2023, Jio Financial debuted on the public market.
The company stated in a regulatory filing that it is “deeply strengthening its relationship with Blackrock, Inc. through this joint venture, 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 democratize access to investment solutions for investors in India.”
The increase in demat accounts in recent years has led to a notable expansion in the brokerage and wealth management business in India. India’s wealth managers are in charge of managing between $1 and 1.2 trillion in financial assets that belong to the nation’s high-net-worth people, according to a Reuters article that quotes Jefferies.
Forecasts suggest bright futures for the wealth management sector, with a significant increase of high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) anticipated in India. The number of people earning more than Rs. 1 crore has increased by 15% over the last five years, and predictions indicate that in the next five years, their numbers will rise to 3.40 lakhs, which will support the sector’s growth.
Jio had previously launched a 50:50 joint venture with BlackRock in July 2023 with the goal of transforming India’s asset management sector with a digital-first strategy. According to the corporation, the new alliance enhances Jio’s cooperation with BlackRock even further.
According to Jio, legislative and regulatory clearances are necessary before the wealth management and brokerage firm can begin operations. On the markets, 10.5 lakh Jio shares were traded in a significant transaction.
