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Sept 2 - By Ira Dugal, Editor Financial News, with global Reuters staff

Billionaire industrialist Mukesh Ambani detailed long-term growth plans last week for his Reliance Industries RELI.NS that included a listing of its telecom business, a new AI venture, and expansion of the retail and new-energy businesses. Yet, why were Reliance's shareholders disappointed? That's our focus this week.

And India's world-beating GDP growth is leaving equity investors out in the cold. Scroll down for more on that.

THIS WEEK IN ASIA

Afghanistan earthquake kills 800, injures 2,800, Taliban asks world for help

European factories return to growth, Asia activity shrinks

China seeks more Russian gas via old link as new pipeline stalled

Chips-for-rare-earths is US-China circuit breaker

Japan Post Bank to launch digital yen in 2026

NEW PRIORITIES

Ambani used Reliance's annual shareholder meeting to communicate three priorities: new businesses, listings, and its alignment with India’s interests amid the U.S. tariff standoff.

Ambani's signal that it is business as usual for Reliance Industries came amid U.S. pressure on India citing its purchases of oil from Russia. As the operator of the world's largest oil refining complex and India's largest importer of Russian crude, the punitive U.S. tariffs on the country's goods exports hit home for Ambani and Reliance.

The chairman of India's most valuable corporate entity, with a market capitalisation of about $204 billion, committed to taking the group's telecom business, Reliance Jio, public by mid-2026, after deciding to defer the telco's listing this year.

Jio, Ambani said, now has 500 million customers as it enters its 10th year of operations, making it the country's largest telco.

A listing would bode well for the sector's pricing outlook and may even drive a re-rating in telecom stocks in the run-up to the IPO, said Jefferies in a note following Reliance's shareholders' meeting.

The brokerage said that for a 10% return on investment, Jio would need to target a market cap of $118 billion by March 2026. This, according to the brokerage's analysis, would need a 20% hike in pricing to get to an EBITDA of $10 billion for the financial year 2026-27.

Any increase in pricing from Jio could prompt other telcos to follow suit, boosting the sector's profitability.

Ambani also announced plans to launch a new subsidiary - Reliance Intelligence. It will partner with Alphabet's GOOGL.O Google to bring cloud services to India and with Meta Platforms META.O to build out AI offerings for businesses and the government.

Alphabet CEO Sundar Pichai and Meta CEO Mark Zuckerberg made a guest appearance at the shareholders' meeting for good measure.

Reliance further detailed expanded goals for its new-energy and fast-moving-consumer-goods businesses.

The company will build the world's largest solar project in Gujarat state while bolstering its green hydrogen capacity. In its consumer business, Reliance will enter apparel and electronics.

Read here for details on the announcements.

Ambani, estimated to have about $100 billion in wealth according to Forbes, has found his business dragged into the middle of the U.S.-India trade tensions, as President Donald Trump doubled the levies on Indian exports citing the country's purchases of Russian oil.

Reliance has a crude oil import deal of 500,000 barrels per day with Russian oil major Rosneft ROSN.MM, the largest oil deal between India and Russia.

Expectedly, Ambani's carefully crafted speech made no mention of Russian oil purchases or the U.S. tariffs on Indian goods. But he did echo Indian Prime Minister Narendra Modi's call for a more self-reliant India.

Read here for more on Ambani's comments.

The Ambani family, though, has postponed a cultural event planned for September 12 in New York, citing "unforseen circumstances".

CONGLOMERATE DISCOUNT WORRIES

Reliance Industries' growth plans disappointed shareholders for one main reason.

Ambani said Reliance would look to IPO the Jio business, unlike the demerger and subsequent listing route it chose with Jio Financial Services JIOF.NS in 2023. This, analysts said, would offer strategic investors in Jio a strong exit but retail investors only modest advantages.

"Structurally, an IPO keeps Jio as a subsidiary under the Reliance Industries fold; investors may apply a holding company discount to the embedded stake," said brokerage Antique Broking.

A holding company or conglomerate discount is when a parent entity is valued below the combined value of its subsidiaries.

"A demerger distributing Jio shares directly to Reliance Industries investors would have been cleaner for value unlocking," Antique Broking said in a note on Saturday.

The demerger of Jio Financial Services had offered all Reliance shareholders one share each in the newly created entity, which is now valued at nearly 2 trillion rupees ($22.5 billion).

Shares of Reliance Industries fell on Friday after Ambani's speech. They have underperformed the NSE Nifty 50 index .NSEI, declining 10% over the past 12 months compared to the benchmark which has dropped 3%.

The average rating across 33 analysts tracking Reliance Industries on LSEG is a "buy", with a median price target of 1,650 rupees, 22% higher than the current price.

Will Reliance's plans translate into shareholder gains? Write to me at [email protected].

MARKET MATTERS

India's economy grew at a much faster than expected 7.8% in the April-June quarter in real terms, defying expectations of a slowdown even before U.S. trade tariffs took effect.

But low inflation in the economy has meant that nominal growth dropped to 8.8% from 10.8% in the previous quarter.

Read here for more on the GDP data and what economists said about it.

The lower nominal growth has meant that corporate profit growth has remained subdued and valuations seem stretched, leaving foreign investors cautious about investing in India. Read that analysis here.

THIS WEEK'S MUST-READ

India and China discussed expanding trade and investment ties on Prime Minister Narendra Modi's first visit to China in seven years to attend a meeting of the Shanghai Cooperation Organisation.

Modi and Chinese President Xi Jinping agreed to improve relations but stopped short of announcing specific measures.

Read this for the outcome of the meeting.

China urged leaders at the regional summit to leverage their "mega-scale market" and boost cooperation in the fields of energy, infrastructure and artificial intelligence.

Read here for more on the summit.

Soon after the meeting, Trump called the India-U.S. trade relation "one sided" in a post on his Truth Social platform. India has offered to cut tariffs to "nothing", Trump said, adding that it is "getting late".

India has so far not responded to the post.

($1 = 88.195 Indian rupees)

(Reporting by Ira Dugal; Additional reporting by Bharath Rajeswaran; Editing by Muralikumar Anantharaman)

(([email protected]; +91-9833024892;))

July 30 (Reuters) - Jio Financial Services Ltd JIOF.NS:

• JIO FINANCIAL SERVICES - BOARD APPROVES ISSUANCE OF UP TO 500 MILLION WARRANTS

• JIO FINANCIAL SERVICES - WARRANTS PRICED AT 316.50 RUPEES EACH

• JIO FINANCIAL SERVICES - TOTAL VALUE OF ISSUANCE UP TO 158.25 BILLION RUPEES

• JIO FINANCIAL - PROPOSED ALLOTTEES FOR WARRANTS ARE SIKKA PORTS TERMINALS, JAMNAGAR UTILITIES AND POWER

Source text: ID:nBSE3PzqG2

Further company coverage: JIOF.NS

(([email protected];))

July 18 (Reuters) - German insurer Allianz ALVG.DE has formed an equally-owned reinsurance joint venture in India with Reliance Group-owned Jio Financial Services JIOF.NS, expanding its presence in the country's insurance market, the companies said on Friday.

Allianz and Jio Financial signed a non-binding agreement to establish a 50-50 joint venture for both general and life insurance operations in India, the companies added.

Reuters in March reported that Allianz was exploring a potential partnership with the Mukesh Ambani-led Reliance Group firm Jio Financial Services.

Bloomberg News was the first to report the talks of the possible partnership last year.

The German company is pushing forward with its expansion in the South Asian nation, describing India as an important growth market and stating it would pursue new opportunities to strengthen its position in the country's insurance sector.

Earlier this year, Allianz had agreed to sell its 26% stake in its non-life and life insurance joint ventures with India's Bajaj Finserv for $2.8 billion, ending a decades-long partnership.

(Reporting by Chandni Shah in Bengaluru; Editing by Mohammed Safi Shamsi)

(([email protected];))

July 17 (Reuters) - Jio Financial Services Ltd JIOF.NS:

• JIO FINANCIAL SERVICES Q1 CONSOL PROFIT 3.25 BILLION RUPEES

• JIO FINANCIAL SERVICES Q1 CONSOL TOTAL REVENUE FROM OPERATIONS 6.12 BILLION RUPEES

Source text: ID:nBSE6Tk9zh

Further company coverage: JIOF.NS

(([email protected];;))

Updates paragraphs 1 and 2 to add regulator's approval of a fifth Jio BlackRock passive fund

July 16 (Reuters) - Jio BlackRock has received approval from India's markets regulator to launch five passive index funds, the Securities and Exchange Board of India's website showed on Wednesday.

The funds will mirror five indexes, namely, the blue-chip Nifty 50 .NSEI., Nifty Midcap 150 .NIMI150, Nifty smallcap 250 .NISM250, Nifty Next 50 .NN50 and the benchmark index tracking Indian government bonds with 8–13 years maturity .NIFGS813.

Jio BlackRock, a joint venture between billionaire Mukesh Ambani's Jio Financial Services JIOF.NS and BlackRock BLK.N, plans to launch nearly a dozen equity and debt funds in India by year-end, Reuters reported last week.

The asset manager is entering the country's 72.2-trillion-rupee ($844 billion) mutual funds market with a mix of active and passive offerings, aiming to leverage its digital reach to sidestep traditional distributor networks.

It has raised over $2.1 billion across three debt mutual fund schemes, attracting investments from 90 institutional investors and 67,000 retail investors so far.

(Reporting by Kashish Tandon in Bengaluru; Editing by Janane Venkatraman and Mrigank Dhaniwala)

(([email protected]; 8800437922;))

June 27 (Reuters) - Jio Financial Services Ltd JIOF.NS:

• JIO FINANCIAL - GRANT OF CERTIFICATE OF REGISTRATION TO JIO BLACKROCK BROKING PRIVATE LIMITED TO ACT AS A STOCK BROKER / CLEARING MEMBER

Source text: ID:nBSE1VKbBw

Further company coverage: JIOF.NS

(([email protected];;))

June 18 (Reuters) - Jio Financial Services Ltd JIOF.NS:

• BUYS 79,080,000 EQUITY SHARES OF JPBL FOR 1.05 BILLION RUPEES

• ACQUIRED 79.1 MLN SHARES OF JIO PAYMENTS BANK FROM STATE BANK OF INDIA

Source text: ID:nBSE8RnQVS

Further company coverage: JIOF.NS

(([email protected];;))

-- Source link: https://tinyurl.com/n2tpafzu

-- Note: Reuters has not verified this story and does not vouch for its accuracy

((Bengaluru newsroom, [email protected]))

May 27 (Reuters) - Reliance Industries Ltd RELI.NS:

• JIOBLACKROCK ASSET MANAGEMENT RECEIVES SEBI APPROVAL FOR MUTUAL FUNDS BUSINESS -STATEMENT

• SID SWAMINATHAN NAMED AS MD, CEO OF NEW ASSET MANAGEMENT CO OF JIOBLACKROCK ASSET MANAGEMENT-STATEMENT

Source text: [ID:]

Further company coverage: RELI.NS

(([email protected];))

April 17 (Reuters) - Jio Financial Services Ltd JIOF.NS:

• Q4 CONSOL PROFIT 3.16 BILLION RUPEES

• Q4 CONSOL TOTAL REV FROM OPS 4.93 BLN RUPEES

• DIVIDEND OF 0.5 RUPEE PER SHARE

Source text: [ID:]

Further company coverage: JIOF.NS

(([email protected];;))

April 3 (Reuters) - Jio Financial Services Ltd JIOF.NS:

• TOTAL INVESTMENT IN JIO BLACKROCK JV REACHES 845 MILLION RUPEES

• CO AND BLACKROCK INVEST 665 MILLION RUPEES IN JOINT VENTURE

Source text: ID:nBSE8GzZHP

Further company coverage: JIOF.NS

(([email protected];;))

March 27 (Reuters) - Jio Financial Services Ltd JIOF.NS:

• INVESTS 10 BILLION RUPEES IN JIO FINANCE

Source text: ID:nBSEb1J9Lf

Further company coverage: JIOF.NS

(([email protected];))

The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

By Shritama Bose and Katrina Hamlin

MUMBAI, March 25 (Reuters Breakingviews) - Now is not the ideal time for Prudential PRU.L to take its Indian asset-management unit public. The London- and Hong Kong-listed insurer might be able to pocket a tidy sum, but it would be left with a smaller stake in a fast-growing corner of a key market.

Pru owns 49% of ICICI Prudential Asset Management, India's second-largest purveyor of mutual funds by assets under management. Majority owner ICICI Bank ICBK.NS is keen on retaining its controlling stake. Pru may seek a $12 billion valuation for the unit, Bloomberg reported earlier this month, citing unnamed people familiar with the matter.

That looks punchy. The business may be worth almost 20% less than that, valuing last year's net profit of $298 million at 32 times earnings, the average multiple for a group of peers. That would peg Pru's stake at $4.6 billion.

There's an obvious short-term appeal for Pru in selling part of its holding. CEO Anil Wadhwani wants to improve returns for shareholders. He also wants to eliminate the last dregs of the valuation gap with Hong Kong-listed rival AIA 1299.HK, which back in 2021 traded at 24 times forward earnings versus Pru's 14 times. AIA's multiple has since plummeted to 11.5 times, with Pru's drop less dramatic to 9.7 times, per LSEG. Wadhwani's intention to hand net proceeds to his shareholders would at least achieve the first goal. But as a one-off payment, it's hardly sustainable.

Besides, ICICI Prudential is growing at a fast pace: funds under management rose 34% in 2024, a tad faster than the broader industry in India. Sustaining that would boost earnings for Pru over time and warrant a bigger price tag in the future. The timing isn't great either. Selling by offshore investors has pulled India's equity market off its highs, and companies are downsizing share sales.

It may be in Pru's best interests to float the business by giving up as little of its ownership as possible. Global money managers are doubling down to grab a slice of India's household savings. BlackRock has entered a joint venture with Mukesh Ambani's Jio Financial Services JIOF.NS. HSBC HSBA.L is deepening its branch network into "cities identified for their growing wealth pools". They're doing so because, despite recent blistering growth, mutual funds have so far reached less than 4% of India's population.

Pru's India listing may be well-intentioned, but the danger is that the insurer will look like it is swimming against the tide.

Follow @ShritamaBose on X

CONTEXT NEWS

Multinational insurer Prudential is considering seeking a valuation of $12 billion for ICICI Prudential Asset Management Company in an initial public offering of the Indian unit, Bloomberg reported on March 4, citing unnamed people familiar with the matter.

Prudential on February 12 said it is evaluating a potential listing of the Indian asset manager, in which it holds 49%. The net proceeds from the float would be returned to shareholders, the insurer added.

(Editing by Antony Currie and Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on BOSE/HAMLIN/[email protected] [email protected]))

By Dharamraj Dhutia

MUMBAI, March 21 (Reuters) - India's Jio Finance has postponed its plan to tap the corporate debt market to the next financial year starting April 1 due to elevated yields, two sources aware of the matter said on Friday.

The company, a wholly-owned unit of Jio Financial Services JIOF.NS, had issued its maiden commercial paper (CP) last week, and had plans to issue its first bond before the end of March.

Jio Finance's move comes days after Reuters reported that State Bank of India SBI.NS, the country's biggest lender by assets, shelved its own plan to raise 150 billion rupees ($1.74 billion) through a sale of bonds this fiscal year.

Jio Finance had plans to raise around 30 billion rupees through five-year bonds, and had floated an offer for a coupon of 7.75%, according to the bankers.

"Investors were not willing to bid at anything below 7.90%, but the company is not comfortable with these levels, and since there is no urgent need of money, they have decided to approach the market after April monetary policy," one source said.

The Reserve Bank of India's monetary policy decision is due on April 9, and the central bank is widely expected to cut its key interest rate by 25 basis points.

"Rates will correct once the new financial year starts, with the RBI set to reduce repo rate one more time, and with major focus on liquidity infusion, we should see some decent correction in short-term yields," the source said.

The sources requested anonymity as they are not authorised to speak to the media. Jio Finance did not immediately reply to a Reuters email for comment.

The non-banking financial company had raised 10 billion rupees through a three-month CP at a yield of 7.80%. Its bonds are rated 'AAA' and the CP is rated 'A1+' by Crisil and Care, both being the highest for the respective instruments.

Yields on corporate bonds rated 'AAA' are up by around 10 basis points since early February, despite the central bank's rate cut and cash infusion amid high supply of debt including from states.

($1 = 86.2250 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Varun H K)

(([email protected];))

March 20 (Reuters) - Reliance group-owned Jio Financial Services JIOF.NS has reached a preliminary agreement with Germany's Allianz SE ALVG.DE to form an insurance business in India, Bloomberg News reported on Thursday, citing people familiar with the matter.

This comes after Allianz earlier this week agreed to sell its 26% stake in its non-life and life insurance joint ventures with Bajaj Finserv BJFS.NS to the Bajaj Group for around 2.6 billion euros ($2.82 billion).

Bloomberg said that billionaire Mukesh Ambani's Jio and Allianz were in the process of finalising the ownership structure.

Allianz is aiming for a majority stake in the venture but is also open to securing governance rights with a path to taking control in the future, the report said.

Allianz and Jio Financial did not immediately respond to Reuters' request for comments.

The German insurer has said that India remains an important growth market and that it would explore new opportunities that strengthen its position in the country's insurance market.

($1 = 0.9227 euros)

(Reporting by Nishit Navin in Bengaluru; Editing by Sonia Cheema)

(([email protected];))

By Dharamraj Dhutia

MUMBAI, March 13 (Reuters) - India's Jio Finance, a wholly-owned unit of Jio Financial Services JIOF.NS, has tapped the debt market with its maiden commercial paper (CP) issuance, ahead of its debut bond sale later this month, three merchant bankers said on Thursday.

The non-banking finance company has issued three-month CPs at a yield of 7.80% and accepted bids worth 10 billion rupees ($114.95 million), the bankers, who have direct knowledge of the matter, told Reuters.

All of them requested anonymity as they are not authorised to speak to the media.

"As expected, Jio Finance has started its funding with a shorter-tenor CP issuance, and we are expecting its bond issue in the next 15 days before the close of the financial year (by March-end)," one of the bankers said.

Jio Finance could raise around 30 billion rupees through the sale of five-year bonds and has floated an offer for a coupon of 7.75%, according to the bankers.

"The company will speak to some investors and once it gets sufficient commitments, it will launch the issue," one of them added.

Jio Finance did not immediately reply to a Reuters email for comment.

The firm's bonds are rated 'AAA', while the CPs are rated 'A1+' by Crisil and Care. Both the ratings are of the highest grade for the respective instruments.

"The ratings factor in JFS (Jio Financial Services) group's healthy capital structure, robust liquidity including its holding of 6.1% of RIL (Reliance Industries) shares, and its experienced management team," Crisil had said in a rating note.

Care said the ratings also take into account the company's strong capital buffers to scale up operations, its robust liquidity framework and the management's experience.

($1 = 86.9950 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Sonia Cheema)

(([email protected];))

March 4 (Reuters) - Jio Financial Services Ltd JIOF.NS:

• JIO FINANCIAL SERVICES LTD - APPROVES ACQUISITION OF 79 MILLION JPBL SHARES FOR 1.05 BILLION RUPEES

• JIO FINANCIAL - JIO PAYMENTS BANK TO BECOME WHOLLY OWNED SUBSIDIARY OF CO

Source text: ID:nBSE6jwCV3

Further company coverage: JIOF.NS

(([email protected];;))

-- Source link: https://tinyurl.com/ynajmfz8

-- Note: Reuters has not verified this story and does not vouch for its accuracy

((Bengaluru newsroom, [email protected]))

By Aditya Kalra

NEW DELHI, Jan 25 (Reuters) - India's Religare Enterprises RELG.NS said a U.S. businessman has made a proposal to acquire a 26% stake in it, the latest twist in the battle for control of the financial services company which has rejected another bid as being priced too low.

The Indian billionaire Burman family, which has founded and controls consumer goods conglomerate Dabur India DABU.NS, raised its stake in Religare to nearly 25% in September 2023, triggering a so-called open offer to buy more shares.

Through the open offer process, which starts on Jan. 27, the Burmans plan to buy around 26% more of Religare to bolster their presence in India's rapidly growing financial services sector, but Religare's independent directors flagged this week the offer price of 235 rupees per share was too low.

In a stock exchange disclosure late on Friday, Religare shared a letter from U.S. entrepreneur Digvijay "Danny" Gaekwad's firm requesting permission from Indian market regulator SEBI to make an open offer of 275 rupees per share for the Indian company, a 17% premium to the current offer.

A representative of the Burman family, Mohit Burman, and the market regulator SEBI did not immediately respond to requests for comment on Saturday. Florida-based Gaekwad did not immediately respond to a Reuters' email seeking comment outside of normal U.S. business hours.

Religare shares closed at 249.40 rupees on Friday, giving it a market value of 81.83 billion rupees ($949.30 million).

The Burmans, if they win control of Religare, will find themselves pitted against other Indian billionaire families in the financial services business, including Mukesh Ambani's Jio Financial Services JIOF.NS and family-controlled Bajaj Finance BJFN.NS.

But the Burmans' Religare bid has faced regulatory and legal challenges.

Earlier this week, Religare disclosed that a minority shareholder had approached the Delhi High Court, and was seeking to stop Burmans' open offer bid.

Legal papers show that the shareholder holds 500 shares in Religare, and the court on Tuesday issued a notice to Burmans and SEBI and said any subsequent action - such as an open offer - "shall be subject to the outcome" of the lawsuit.

($1 = 86.2000 Indian rupees)

(Reporting by Aditya Kalra and Siddhi Nayak; Editing by Muralikumar Anantharaman)

((Email: [email protected]; X: @adityakalra;))

Jan 21 (Reuters) - Jio Financial Services Ltd JIOF.NS:

• FURTHER SUBSCRIBED TO JIO BLACKROCK ASSET MANAGEMENT

• DEAL FOR 1.17 BILLION RUPEES

Source text: ID:nBSE2gzx2j

Further company coverage: JIOF.NS

(([email protected];;))

Jan 17 (Reuters) - Jio Financial Services Ltd JIOF.NS:

• Q3 CONSOL PROFIT 2.95 BILLION RUPEES

• Q3 CONSOL TOTAL REVENUE FROM OPERATIONS 4.38 BILLION RUPEES

Source text: ID:nBSEb26fVL

Further company coverage: JIOF.NS

(([email protected];;))

MUMBAI, Oct 29 (Reuters) - India's Jio Payment Solutions, a wholly-owned subsidiary of billionaire Mukesh Ambani-led Reliance Group firm Jio Financial Services JIOF.NS, has received the central bank's approval to operate as an online payment aggregator, Jio Financial said on Tuesday.

A payment aggregator is a third-party service provider that enables customers to make and businesses to accept payments online. Payment aggregators enable their clients to accept various payment methods such as debit cards, credit cards, cardless easy monthly installments, United Payments Interface transfers, bank transfers, e-wallets, and e-mandates.

The approval is effective Oct. 28.

Jio Financial was spun out of the Ambani-led Reliance Group last year.

(Reporting by Siddhi Nayak; Editing by Mrigank Dhaniwala)

(([email protected]; +91 22 6921 7848; Reuters Messaging: X: https://twitter.com/siddhiVnayak))

Oct 23 (Reuters) - Mukesh Ambani-led Reliance Group firm Jio Financial Services JIOF.NS is in talks with Allianz SE ALVG.DE to set up an insurance partnership in India, Bloomberg News reported on Wednesday.

(Reporting by Ashna Teresa Britto; Editing by Abinaya Vijayaraghavan)

(([email protected];))

BENGALURU, Oct 16 (Reuters) - BlackRock BLK.N, the world's biggest asset manager, is in talks with Mukesh Ambani-led Reliance Group firm Jio Financial Services JIOF.NS to set up a private credit venture, Bloomberg News reported on Wednesday, citing people familiar with the matter.

The two companies will form a 50-50 joint venture to lend to businesses ranging from large companies to startups, if talks materialise, the report said, adding that a final decision on the venture was yet to be made.

BlackRock declined to comment, while Jio Financial did not immediately respond a Reuters request for comment.

India is seeing strong demand for private credit with a growing number of Indian alternative investment funds expanding their businesses in the category, mirroring a pick-up in activity across Asia.

This would be the third JV between the U.S.-based asset management firm and the Indian financial services company, after they announced ventures to start asset management and broking businesses in India.

Earlier this month, the companies got approval of the country's markets regulator to act as co-sponsors and set up a mutual fund business in the country.

(Reporting by Nishit Navin; Editing by Maju Samuel)

(([email protected];))

BENGALURU, Oct 4 (Reuters) - Jio Financial JIOF.NS and U.S.-based BlackRock BLK.N got in-principle approval from India's markets regulator to act as co-sponsors and set up a mutual fund business in the country, the Mukesh Ambani-led Reliance Group company said on Friday.

Jio Financial said the Securities and Exchange Board of India will grant the final approval after the two companies fulfil certain requirements, on which it did not elaborate.

Days after its demerger from Reliance Industries RELI.NS in July 2023, the company had announced the formation of a 50:50 joint venture with BlackRock to launch asset management services in India.

The companies signed a second joint venture in April to set up a wealth management and broking business in the country.

(Reporting by Nishit Navin; Editing by Shreya Biswas)

(([email protected];))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, Sept 20(Reuters Breakingviews) - Prime Minister Narendra Modi has spent much of the past decade lowering barriers to foreign investment in India. Yet a growing list of firms including BlackRock BLK.N, BMW BMWG.DE and Shein are expanding in the country in partnership with local tycoons. It tightens the grip powerful families have on the world’s fifth-largest economy, and sets them up as future global rivals to those knocking on their door.

On paper, the once-markedly socialist country is open for business. Its craving for capital is strong. Overseas companies in most sectors are free to enter the market on their own, unlike in China, where large swathes of the economy were kept off limits and where some sectors, like autos, were opened up on the condition that foreign companies found local partners.

The problem is, India’s federal political system and sheer cultural and geographical diversity means it remains a tricky place for international companies. Powerful families offer a shortcut to establishing a nationwide footprint, avoiding cut-throat domestic competition, or achieving both of those things.

BlackRock’s decision to re-enter India exemplifies the dilemma. The company run by Larry Fink, which manages over $10 trillion, is in the process of teaming up with Mukesh Ambani’s Jio Financial Services JIOF.NS in asset and wealth management. The U.S. company exited an Indian joint venture with DSP in 2018 because it didn’t have a path to control.

Fink is unlikely to have a path to control with Jio but the rapid financialisation of savings in recent years means the market is too attractive for BlackRock to ignore. Partnering with a tycoon is less risky for the U.S. company than trying to beat India’s richest man who wants to push into financial services and is known for obliterating competition.

The desire of foreign companies to defend their market position in India partly explains their rush to subscribe to fundraisings by Reliance’s RS.N business units in 2020. These include Facebook-owner Meta Platforms' META.O $5.7 billion purchase of a 10% stake in Reliance’s digital and telecoms business. India remains open for U.S. Big Tech but Indian companies are also flexing their muscles more in digital businesses from telecoms to e-commerce as more Indians get smartphones.

Elsewhere, New Delhi is encouraging partnerships through subsidies in its flagship production-linked incentive scheme to spur manufacturing. This allows the government to dictate which foreign companies team up with which Indian families to be the next leaders in future industries.

Taiwan’s Hon Hai Precision Industry 2317.TW, more widely known as Foxconn, pulled out of a joint venture last year to make chips with Anil Agarwal’s Vedanta VDAN.NS after widespread concerns about the Indian company’s debt and its ability to fund investments. Meanwhile, global companies like French oil giant TotalEnergies TTEF.PA are burnishing their green credentials by partnering with Indian tycoon Gautam Adani, who has big ambitions in renewable energy. Smoother access to subsidies is one reason companies including Japan’s Fujifilm 4901.T are scouting for local partners before they start production in India.

It’s significant that many of the new partnerships are in the realm of technology. Adani’s group will work with Israel’s Tower Semiconductor TSEM.TA to build a chip fabrication plant; German carmaker BMW and Tata Technologies TATE.NS plan to leverage Indian talent in IT to develop intellectual property that will drive cars of the future.

While India’s approach to inward investment differs from China’s in many ways, the country desires the same thing as its neighbour wanted from foreign multinationals: know-how.

The government yearns for the South Asian nation to become a manufacturing powerhouse. India’s leading business families also want to dominate in their home market and to break out as leaders on the global stage. After picking up a stake in UK telecom operator BT BT.L last month, Bharti Enterprises Chair Sunil Bharti Mittal told journalists India's government is continuously encouraging a handful of companies which have gone global to accelerate the process.

That sets up the potential for at least some of the new Indian alliances to sour, just as several Chinese joint ventures did. True, some foreign companies that ventured into the People’s Republic simply failed to keep up with fast-changing local consumer preferences. Others, though, said they were pressured into handing over technology to their private or state-backed joint venture partners, to local officials or to Chinese regulators as a condition for doing in business in the world’s second-largest economy.

That complaint took centre stage in a trade war launched in 2018 by then U.S. President Donald Trump. When Stellantis STLAM.MI ended its joint venture with Guangzhou Automobile Group 601238.SS in 2022, the European carmaker’s CEO Carlos Tavares blamed rising “political influence” in doing business with partners in China.

It is therefore perhaps unsurprising that Chinese companies have the least freedom to operate on their own in India. The government turned up the heat on companies from the People’s Republic after a deadly skirmish between the two countries’ militaries along the Himalayan border in 2020. This tension has resulted in some particularly eye-catching joint ventures struck by Chinese companies that want to continue to expand in the fast-growing Indian market.

Four years after New Delhi banned Shein’s app, the fast-fashion company which was founded in China is back in partnership with Ambani’s $240 billion Reliance Industries. Together they plan to digitise the supply chains of the conglomerate’s retailer, manufacture goods and export them to the world. Similarly, less than two years since India launched an investigation into a local unit of Chinese automotive giant SAIC Motor 600104.SS, the company finalised a joint venture in March to sell its MG-branded cars in partnership with Sajjan Jindal’s JSW Group.

New arrivals at least have some examples of successful foreign joint ventures in India to aspire to. Take $46 billion Maruti Suzuki MRTI.NS, purveyor of 40% of the country’s cars. This partnership with Japan’s Suzuki Motor 7269.T has delivered yearly returns to shareholders over the past decade, including dividends, which exceed those of the benchmark Nifty 50 Index. Meanwhile, Adani Wilmar ADAW.NS, the Adani group’s partnership with Singapore’s Wilmar WLIL.SI, established a quarter of a century ago, is behind India’s largest selling edible oil brand.

Outside of joint ventures, some foreign companies have had more luck than others on their own in India. South Korea’s Samsung 005930.KS has had remarkable success selling smartphones and held a leading position in the consumer electronics market for a long time, but British telecom operator Vodafone VOD.L struggled with a price war and merged with India’s Idea Cellular in 2018. Whether or not India is open for business, foreign business alliances are accumulating even more power in the hands of the country’s leading tycoons.

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(Editing by Una Galani and Ujjaini Dutta)

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Aug 30 (Reuters) - JIO FINANCIAL SERVICES EXECUTIVE JIOF.NS:

• JIO FINANCIAL EXEC: JIO PAYMENT SOLUTIONS PURSUING MERCHANT TIE-UPS

• JIO FINANCIAL EXEC: BLACKROCK JV WILL HELP BRING MORE INVESTMENT PRODUCTS

• JIO FINANCIAL EXEC: KEY LEADERSHIP IDENTIFIED FOR BLACKROCK JV

• JIO FINANCIAL EXEC: IN ADVANCED STAGES OF GO TO MARKET STRATEGY FOR BLACKROCK JV

• JIO FINANCIAL EXEC: HOPEFUL OF GETTING REGULATORY APPROVALS FOR THE BUSINESS WITH BLACKROCK

• JIO FINANCIAL EXEC: JIO PAYMENT SOLUTIONS PURSUING MERCHANT TIE-UPS

• JIO FINANCIAL EXEC: BLACKROCK JV WILL HELP BRING MORE INVESTMENT PRODUCTS

• JIO FINANCIAL EXEC: KEY LEADERSHIP IDENTIFIED FOR BLACKROCK JV

• JIO FINANCIAL EXEC: IN ADVANCED STAGES OF GO TO MARKET STRATEGY FOR BLACKROCK JV

• JIO FINANCIAL EXEC: HOPEFUL OF GETTING REGULATORY APPROVALS FOR THE BUSINESS WITH BLACKROCK

(([email protected];))

Updates with closing share price

By Indranil Sarkar and VarunVyas Hebbalalu

BENGALURU, Aug 29 (Reuters) - India's Reliance Industries RELI.NS is on track to more than double in size before the end of the decade, its billionaire-chairman Mukesh Ambani told shareholders on Thursday.

Reliance, which is India's most valuable company with a market capitalisation of $245.44 billion, said it expects to double sales and operating profit in its telecom and retail businesses over the next three to four years as it unveiled measures to step up its adoption of artificial intelligence.

As well as developing a suite of AI tools and platforms called 'Jio Brain' and setting up data centres in the western state of Gujarat, which it plans to power with green energy, Reliance will also partner with global tech firms.

"Our goal is to create the world's lowest AI inferencing cost, right here in India. This will make AI applications in India more affordable than anywhere else," Ambani said during the company's annual general meeting.

Inferencing is how live data is run through a trained AI model to make a prediction or solve a task.

Reliance shares rose by as much as 2.5% after it also said it plans to consider issuing bonus shares to its existing shareholders at a 1:1 ratio, its first such move since 2017.

The shares pared some of those gains later to close 1.5% higher at 3,041.85 rupees.

While the AI and cloud-related efforts will help Reliance's telecom arm Jio retain customers, they are "expected evolutions" which have already been implemented by competitors, said Balaji Subramanian, a research analyst at IIFL Securities.

"Those are all incrementally positive, but the AGM today, at least from a Jio perspective, was not groundbreaking," he added.

Retail and telecoms are two of Reliance's largest businesses, with the former making up nearly a third of its first-quarter revenue, while digital services provided by Jio contributed 15%.

Jio, launched in 2007, has become the market leader in Indian telecoms, surpassing Bharti Airtel BRTI.NS and Vodafone Idea VODA.NS to boast the largest subscriber base.

Reliance Retail, which owns e-commerce platforms with JioMart and stores under labels from Reliance Digital to Smart Bazaar, has become India's largest retailer by revenue, offering Indians just about everything.

Reliance also said it expects its new energy business to become as profitable as its oils-to-chemicals unit over the next 5-7 years.

Meanwhile, Ambani welcomed Disney's DIS.N $8.5 billion-merger with Reliance's media assets to form India's largest entertainment group, which was approved on Wednesday by the country's antitrust authority.

"Just like Jio and Retail, our expanded Media business will be an invaluable growth centre in the Reliance ecosystem," he said.

($1 = 83.8800 Indian rupees)

(Reporting by Indranil Sarkar and Varun Hebbalalu in Bengaluru; editing by Jason Neely, David Goodman, Dhanya Skariachan and Alexander Smith)

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Aug 27 (Reuters) - Jio Financial Services Ltd JIOF.NS:

• UNIT INVESTED IN 6,75,00,000, 8.1% SHARES OF RELIANCE INTERNATIONAL LEASING IFSC

• DEAL WORTH 675 MILLION RUPEES

• INVESTMENT IS MADE TO FUND BUSINESS OPERATIONS OF RILIL

Source text for Eikon: ID:nBSE1gn3Q2

Further company coverage: JIOF.NS

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