The stock Jio Financial Services advanced 5 per cent to an intra-day high of Rs 371.95 after it entered into a joint venture with US-based BlackRock. Over the past six months, Jio shares have soared 64 per cent. Notably, Jio has delivered positive monthly returns consistently from November 2023 to March 2024. Jio Financial made its debut on the stock exchanges in August 2023.
“This joint venture further strengthens the Company’s relationship with Blackrock, Inc., with whom the Company had announced a 50:50 joint venture on July 26, 2023, to transform India’s asset management industry through a digital-first offering and democratise access to investment solutions for investors in India,” the company said in a regulatory filing.
The broking and wealth management sector in India is experiencing significant growth, fueled by the surge in demat accounts in recent years. According to a Reuters report citing Jefferies, India’s wealth managers oversee approximately $1–1.2 trillion in financial assets belonging to high net-worth individuals in the country.
Projections indicate promising prospects for the wealth management industry, with expectations of a substantial rise in high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) in India. Over the past five years, individuals with incomes surpassing Rs. 1 crore have seen a 15% increase, with forecasts suggesting their numbers will reach 3.40 lakhs in the next five years, contributing to the sector’s expansion.
Earlier, in July 2023, Jio had announced a 50:50 joint venture with BlackRock, aiming to revolutionise India’s asset management industry with a digital-first approach. The recent partnership further strengthens Jio’s collaboration with BlackRock, the company stated.
Jio said that the launch of the wealth management and broking business is contingent upon regulatory and statutory approvals. A large deal involving 10.5 lakh shares of Jio changed hands on the exchanges.
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