Jio Financial Services‘ shares shot up on Tuesday after the company said it has established two joint venture companies with BlackRock to venture into India’s asset management sector.

What Happened: Jio Financial Services and BlackRock have incorporated two companies, “Jio BlackRock Asset Management Private Limited” and “Jio BlackRock Trustee Private Limited“, the company said in a press release. These companies, established on October 28, 2024, will primarily focus on the mutual fund business, subject to regulatory approvals.

Jio Financial Services plans to invest ₹82.50 crore for a 50% stake in Jio BlackRock Asset Management Private Limited and ₹40 lakh for a 50% stake in Jio BlackRock Trustee Private Limited.

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The incorporation of these companies follows the in-principle approval received by Jio Financial Services and BlackRock Financial Management to act as co-sponsors and establish the proposed mutual fund.

Earlier this month, the companies received the in-principle approval from the Securities and Exchange Board of India (SEBI) to set up a mutual fund house in the country. In April, the companies had entered a 50:50 joint venture to set up a wealth management company and incorporate a brokerage firm in India. Subsequently in September, it partnered with BlackRock Advisors Singapore to establish a new investment advisory company, Jio BlackRock Investment Advisers.

Jio Financial Services has been actively exploring partnerships in the financial sector. The company is reportedly in preliminary discussions with German firm Allianz SE for a potential insurance partnership in India. The development comes amid reports that Allianz is considering a withdrawal from its insurance joint ventures with Bajaj Finserv. 

Price Action: Jio Financial Services jumped 2.16% to 323.50 on Tuesday afternoon.

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