BlackRock Partners with Ambani’s Jio Financial Services to Make Re-entry into India.

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Jio Financial Services Limited (JFS), a newly separated entity from Reliance Industries Ltd, has teamed up with BlackRock to create a joint venture called “Jio BlackRock.” The main goal of this 50:50 partnership is to offer technologically-enabled and affordable investment solutions to millions of investors in India.

JFS stated that Jio BlackRock will benefit from BlackRock’s extensive expertise and talent in investment management, risk management, product excellence, advanced technology, efficient operations, scale, and market knowledge. At the same time, JFS will contribute its local market understanding, digital infrastructure capabilities, and robust execution abilities. The combination of these strengths will introduce a unique player to the Indian market, providing a wide scope of resources and scale.

The initial investment in the joint venture is targeted to be $150 million from each partner. Rachel Lord, Chair & Head of APAC at BlackRock, expressed excitement about the opportunity in India, highlighting the potential arising from increasing affluence, favorable demographics, and digital transformations across various industries. She sees the partnership with JFS as a means to revolutionize India’s asset management industry and improve financial futures for countless investors.

Hitesh Sethia, President and CEO of JFS, also spoke positively about the partnership, emphasizing that Jio BlackRock will be a customer-centric and digital-first enterprise. The vision is to democratize access to financial investment solutions, delivering financial well-being to every Indian.

The joint venture will commence operations once it receives the necessary regulatory and statutory approvals, and it will have its own dedicated management team.

In connection with this development, Reliance Industries Ltd announced the change of name for its demerged entity “Reliance Strategic Investments” to “Jio Financial Services” from July 25. The demerger was aimed at expanding Reliance’s presence in the lucrative financial services sector, considering its existing non-bank financial company license.

Jio Financial Services (JFS) has been valued at approximately $20 billion after its stock price was set higher than expected at Rs 261.85 during the demerger from Reliance Industries. As a result, JFS would be among the top 40 Indian companies by market capitalization, with Reliance leading the list at $233 billion. JFS will be included in major Indian indices, including the benchmark Nifty 50, but trading will begin once it is listed.

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Analysts anticipate that JFS’ access to extensive data from Reliance’s telecom and retail businesses will be advantageous for starting lending operations. It is expected that JFS will be rated AAA, enabling it to borrow at attractive rates, according to Macquarie Research. The specific listing date for JFS will likely be determined during Reliance’s upcoming annual general meeting.

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