Jio Financial Services and BlackRock Invest Rs.117 Crore in Mutual Fund Industry
Jio Financial Services Limited along with its JV partner US-based BlackRock invested heavily into mutual fund business on Monday.
JFSL and BlackRock each subscribed for and alloted 5.85 crore equity shares of Rs.10 each in Jio BlackRock Asset Management Private Limited (a 50:50 joint venture between the company and BlackRock), totalling Rs.117 crore, according to a regulatory filing.
The joint venture has filed an application with the Securities and Exchange Board of India (SEBI) seeking permission to begin its operations. The initial investment from JFSL and BlackRock in this joint venture amounts to Rs.82.5 crore each.
Besides, the joint venture subsidiary Jio BlackRock Investment Advisers Private Limited has also formed a wholly owned subsidiary by the name of Jio BlackRock Broking Private Limited. It was incorporated on January 20, 2025, to pursue the business of broking subject to the approvals of regulators.
During the third quarter of the current financial year, the company reported consolidated net profit of Rs.295 crore which remained nearly flat compared to Rs.294 crore in the same quarter last year.
But its total income increased to Rs.449 crore from Rs.414 crore in the corresponding period of the previous financial year. Total expenses for the quarter increased to Rs.131 crore, compared with Rs.99 crore in the same period last year. In an investment in mutual fund business, and with a broking subsidiary launch, one can easily get the feel of JFSL and BlackRock’s interest to grow its base within India’s financial market. With these moves, the joint venture is going to be even more robust in such a competitive sector of asset management and broking.
