Jio Financial shares jump 3% as arm gets RBI nod to operate as payment aggregator

Shares of Jio Financial Services rose 3% on the NSE today, reaching an intraday high of ₹325.90, after its subsidiary, Jio Payment Solutions Limited (JPSL), received RBI approval to operate as an online payment aggregator effective October 28. Additionally, the company revealed the incorporation of two joint ventures with BlackRock.

The shares opened at ₹317.70, a slight increase of 0.33% from yesterday's close of ₹316.65. As of writing, the shares are trading at ₹322.65.

A payments aggregator (PA) license allows companies to provide payment services to merchants, including online businesses and e-commerce firms, by accepting diverse payment methods from customers. The RBI's approval for Jio Financial's subsidiary to operate as an online payments aggregator is particularly significant as it boosts consumer trust in the subsidiary.

In addition to the RBI nod, Jio Financial Services and BlackRock, a US-based asset managers company announced the incorporation of two joint venture companies including Jio BlackRock Asset Management and the Jio BlackRock Trustee, on October 28, 2024, following in-principle approvals to enter India’s mutual fund industry.

Jio Financial Services has invested ₹82.5 crore for a 50% stake in Jio BlackRock Asset Management and ₹40 lakh for a 50% stake in Jio BlackRock Trustee. The new ventures will focus on mutual fund operations, subject to regulatory approvals, and have received their incorporation certificates from the Ministry of Corporate Affairs, Jio Financial informed via an exchange filing today.

This joint venture marks the third collaboration between Jio Financial Services and BlackRock, following the establishment of a wealth management and broking business in April 2024 and a prior asset management venture launched in 2023. In February, Jio Financial Services had dismissed reports speculating a potential acquisition of Paytm's wallet business.

In another development, Jio Financial Services announced that customers can now invest in SmartGold through the JioFinance app, allowing them to buy digital gold, especially during Dhanteras. SmartGold provides a completely digital process for purchasing gold, with investments starting as low as ₹10. Customers have options to buy SmartGold in rupees or grams and can directly purchase gold coins for doorstep delivery.

On October 18, the company released its September quarter results. The company reported a 3.13% year-on-year growth in net profit for Q2 FY25, reaching ₹689 crore compared to ₹668 crore in the same period last year. Revenue from operations rose 14.06% to ₹693.50 crore, up from ₹608.04 crore.