Jio Financial Services shares in focus as co forms JV for investment advisory services

Shares of Jio Financial Services Ltd (JFS) are in focus on Monday morning after the company said it has formed a joint venture company with BlackRock Advisors Singapore to offer investment advisory services, subject to regulatory approvals. 

JFS said it would invest an amount of Rs 3 crore towards initial subscription of 30,00,000 equity shares of face value Rs. 10/- each. The certificate of incorporation was received from the Ministry of Corporate Affairs, on September 7. The said transaction does not fall within related party transactions, Jio Financial said adding that the promoter, promoter group and group companies are not interested in the transaction.

The JV company is named 'Jio BlackRock Investment Advisers Private Limited' and no governmental or regulatory approvals were required for its incorporation, Jio Financial said.  

The stock has fallen 3.6 per cent in the past three months against 8.14 per cent rise in the BSE Sensex. On year-to-date basis, the scrip is up 44 per cent against Sensex's 12.3 per cent rise.  

In July, the RBI approved Jio Financial Services' application to convert to a core investment company (CIC) from a systemically important non-deposit-taking NBFC. 

JFS is a holding company and operates its financial services business through its consumer-facing subsidiaries namely Jio Finance Limited (JFL), Jio Insurance Broking Limited (JIBL), and Jio Payment Solutions Limited (JPSL) and joint venture namely Jio Payments Bank Limited (JPBL).

It was originally incorporated as Reliance Strategic Investments Private Limited on July 22, 1999, under the Companies Act 1956. Subsequently, the name of the company was changed to Reliance Strategic Investments Limited and a fresh certificate of incorporation was issued on January 14, 2002. The name of the company was further changed to ‘Jio Financial Services Limited’ and a fresh certificate of incorporation was issued on July 25, 2023.