Jio Financial Services, the financial subsidiary of Reliance Industries, witnessed a significant surge of 5% during today's intraday session, reaching ₹371.95 per share. This increase follows the company's announcement, made through an exchange filing on Monday, regarding the signing of an agreement to establish a 50:50 joint venture with BlackRock.
The venture aims to engage in wealth management activities, including the establishment of a wealth management company and, subsequently, a brokerage firm in India. "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.
Also Read: Jio Financial Services: KR Choksey advises buying the stock, sees 24% upside – 3 key reasons behind the bullish stance The company also informed investors that the launch of the wealth management and broking business is subject to regulatory and statutory approvals. 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.
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