Jio’s new blast: Zerodha, Groww will get tough competition with BlackRock
Jio BlackRock: Jio Financial Services Ltd. (JFSL), the financial services arm of Reliance, one of the largest companies in India, and the world’s investment giant BlackRock have taken a big step together. Both the companies have announced investment under a 50-50 joint venture. A total investment of ₹ 82.5 crore has been made in this partnership and the market capitalization of JFSL is around ₹ 1.65 lakh crore.
What is the purpose of the partnership between Jio and BlackRock?
Jio BlackRock: In September 2024, Jio and BlackRock together formed Jio BlackRock Investment Advisory Private Limited. Its main objective is to provide investment advisory services, meaning that if you need any kind of advice related to investment, then it provides you advisory services. The company has initially invested Rs 3 crore for 30 lakh equity shares (₹ 10 face value per share).
Launch of Jio BlackRock Broking
Jio BlackRock: Jio BlackRock Investment Advisory Private Limited, another subsidiary of JFSL, has decided to enter the broking sector. The company has set up a wholly owned subsidiary called Jio BlackRock Broking Private Limited on 20 January 2025, although approval is yet to come on it.
Entry into broking and wealth management
Jio BlackRock: Reliance Industries Chairman Mukesh Ambani has already indicated that Jio Financial Services is going to take a big step in the field of stock broking and wealth management.
Status of Jio Financial Share Price
Jio BlackRock: At present, the price of one share of Jio Financial Service is around Rs 234. Its highest level in the last 52 weeks has been ₹ 243.40, while its lowest level has been ₹ 234.75.
Who is BlackRock CEO Larry Fick?
Jio BlackRock: Larry Fick, who is the CEO of BlackRock, is considered the world’s most powerful investor giant, because BlackRock has a lot of money, meaning asset management capacity of more than $10 trillion (830 lakh crores). Which is two and a half times India’s GDP and half of America’s GDP.
BlackRock’s investment in India
Jio BlackRock: BlackRock has bought 5.85 crore shares worth Rs 117 crore to strengthen its hold in the Indian market. The company has also sought permission from the capital market regulator under Jio BlackRock Asset Management Private Limited.
Quarterly results of Jio Financial Services
Jio BlackRock: On January 17, 2025, JFSL released its quarterly results, in which a net profit of Rs 214 crore has been recorded, although according to research, the company’s profit in the same quarter last year was Rs 294 crore.
Business model of Jio Financial Service
Jio BlackRock: The company will provide brokerage services to customers to invest in mutual funds, bonds, shares and other financial instruments, making it easier for investors to invest.
Jio’s entry in mutual funds too
Jio BlackRock: JFSL has already entered the mutual fund business. Jio BlackRock Asset Management received formal approval from SEBI in October 2024. Last month, Jio BlackRock Asset Management Company appointed George Heber Joseph as the first CEO of the joint venture.
Zerodha and Groww will get tough competition
Jio BlackRock: After the entry of Jio and BlackRock, there can be a big stir in the stock broking and mutual fund market of India, as platforms like Zerodha and Groww will have to be ready for their competition.
FAQ: Important questions and answers about Jio and BlackRock
Question: What is the market cap of Jio Financial Service?
Answer: The market cap of Jio Financial Services is ₹1.78 lakh crore.
Question: Whose company is Jio Financial Services?
Answer: It is a subsidiary of Reliance Industries (RIL).
Question: In which business are Jio and BlackRock partnering?
Answer: Money management and broking business.
Question: What does BlackRock do?
Answer: It is one of the world’s largest asset management companies, providing investment-related services.
Jio BlackRock: This partnership between Jio and BlackRock can prove to be a big change for the Indian financial market. This will provide better services to investors and will give tough competition to platforms like Zerodha, Groww. Now it will be interesting to see how Jio Financial Services makes its place in the market.
