Jio Financial shares in news as JFS-Blackrock mutual fund application with Sebi under process

Shares of Jio Financial Services Ltd (JFS) will be in focus on Thursday morning after the markets regulator Sebi's latest processing status report on mutual fund applications suggested that the application by JFS and BlackRock Financial Management dated October 19, 2023 was under consideration of getting an in-principle approval.

The report suggested that another listed firm Angel One Ltd has been granted in-principle and that an approval for final registration is under consideration.

Jio Financial Services shares are up 2 per cent in the last one month but are down 5.7 per cent in the last six months. The demerged financial services arm of Reliance Industries Ltd last year formed a joint venture (JV) with BlackRock for asset management business. In July last year, the two entities announced a 50:50 joint venture with a $150 million investment each to enter the asset management business in India. The Sebi applicants list is updated by Sebi at the end of every quarter.

Jio Financial Services Ltd (JFS) recently said its profit for the September quarter doubled to Rs 668 crore on a sequential basis. This was the first results reported by JFS after being carved out from Mukesh Ambani-led Reliance Industries. Consolidated profit stood at Rs 668 crore for the quarter against Rs 332 crore in the June quarter, JFS said in a regulatory filing.

In a presentation earlier, JFS said it will increase financial services penetration by transforming and modernising them with a digital-first approach. It suggested that its strong capital base will fund growth strategy, meet regulatory requirements, and provide buffers for contingencies.

JFS reported a 48 per cent QoQ jump in revenue from operations to Rs 608 crore, helped partly by dividend income of Rs 217 crore.