Jio Financial Services: Listing-bound RIL's demerged biz forms JV with BlackRock, shares details

The newly demerged business of Reliance Industries namely Jio Financial Services (JFS) announced forming a joint venture (JV) with BlackRock for an entry into asset management industry. Jio BlackRock, RIL in a press release said, combines Jio Financial Services’ knowledge and resources and BlackRock’s scale and investment expertise to deliver affordable, innovative investment solutions to millions of investors in India. The partnership aims to transform India’s asset management industry through a digital-first offering and democratise access to investment solutions for investors in India.

Jio BlackRock will bring BlackRock’s expertise and in investment management, risk management, access to technology, operations, scale, and intellectual capital around markets. On the other hand, JFS will contribute to local market knowledge, digital infrastructure capabilities and execution capabilities.

"Together, the partnership will introduce a new player to the India market with a unique combination of scope, scale, and resources. JFS and BlackRock are targeting initial investment of $150 million each in the joint venture," RIL told stock exchanges.

Rachel Lord, Chair & Head of APAC, BlackRock, said: “India represents an enormously important opportunity. The convergence of rising affluence, favourable demographics, and digital transformation across industries is reshaping the market in incredible ways. We are very excited to be partnering with JFS to revolutionise India’s asset management industry and transform financial futures. Jio BlackRock will place the combined strength and scale of both of our companies in the hands of millions of investors in India.”

President and CEO at JFS, Hitesh Sethia, said: “This is an exciting partnership between JFS and BlackRock, one of the largest and most respected asset management companies globally. The partnership will leverage BlackRock’s deep expertise in investment and risk management along with the technology capability and deep market expertise of JFS to drive digital delivery of products. Jio BlackRock will be a truly transformational, customer centric and digital-first enterprise with the vision to democratise access to financial investment solutions and deliver financial well-being to the doorstep of every Indian.”

The joint venture will launch operations post receipt of regulatory and statutory approvals. The company will have its own management team.

Also read: Suzlon Energy shares in focus after Q1 results, management commentary