The share price of the large-cap company rose by 2 percent to its intraday high of Rs 239.2 per share from its previous close of Rs 234.45 on Thursday after the company joint venture with a leading asset management firm.
According to the Securities Exchange Board of India, Jio Financial and BlackRock a leading global asset management firm, have agreed to form a 50:50 joint venture to launch a mutual fund business in India called Jio BlackRock. They’ve filed for a license with SEBI and are awaiting approval.
Their vision is to transform the industry by providing affordable, innovative investment solutions via a digital-first approach. To reach millions of Indians, they combine Jio’s market expertise and BlackRock’s investment experience.
This venture has the potential to disrupt the 58,000 crores Indian mutual fund industry in the same way that Reliance Jio did the telecom industry. BlackRock, a global asset management firm, is returning to India after a five-year absence.
Net revenue of the company has increased by 46 percent on a quarterly basis, from Rs 414 crore in Q1FY24 to Rs 608 crore in Q2FY24.
In addition, the company’s net profit rose by 101 percent on a sequential basis, from Rs 332 crores in Q1FY24 to Rs 668 crores in Q2FY24.
The large company has a market capitalization of Rs 1,53,000 crores, also it has a low debt-to-equity ratio of 0.01 and the net profit margin is higher than in the last three years, it also has a good current ratio and a quick ratio of 8.11.
JFSL was founded in July 1999 as Reliance Strategic Investments Private Limited under the Companies Act of 1956. Jio Financial Services Limited was founded on July 23, 2015. JFSL is an RBI-registered NBFC.
Written by Sriram KV
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