Jio Financial shares jump 5% on second JV pact with BlackRock; here's what analysts say

Jio Financial Services Ltd shares rose sharply in Tuesday's trade after the non-banking financial company (NBFC) announced it has entered into a pact with BlackRock. The stock today jumped 4.90 per cent to hit a day high of Rs 371.75. At this price, it was down 1.84 per cent from its all-time high value of Rs 378.70, a level seen last week on April 8.

Jio Financial said it has signed an agreement with BlackRock Inc and BlackRock Advisors Singapore Pte Ltd to form a 50:50 joint venture (JV) for setting up a wealth management and broking business in India.

This is Jio and BlackRock's second JV. The duo had launched an asset management venture last year. "This JV further strengthens the company's relationship with Blackrock, with whom Jio 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 NBFC stated.

"With BlackRock backing, we expect Jio to come up with innovative products. The company is set to create a lot of disruptions in the space," Gaurav Dua, Senior VP & Head - Capital Market Strategy at Sharekhan by BNP Paribas, told Business Today TV.

The market expert also mentioned that Sharekhan don't have a buy or sell call on the counter at present as the company's business plans are not clear.

"The stock has formed a fresh base around Rs 340-350. It looks promising even at current level as fresh money is chasing the scrip. And, expected upside target for Jio Financial would be Rs 450," said Ashish Chaturmohta, Executive Director and Fund manager at JM Financial.

Around 28.99 lakh shares were last seen changing hands on BSE today. The figure was lower than the two-week average volume of 30.23 lakh shares. Turnover on the counter was at Rs 106.42 crore, commanding a market capitalisation (m-cap) of Rs 2,31,831.34 crore. There were 9,00,515 sell orders today as against buy orders of 4,63,883 shares.

As of December 2023, promoters held a 47.12 per cent stake in the non-banking finance company (NBFC). Jio Financial is scheduled to declared its quarterly earnings on April 19, 2024.