Bajaj Finserv extends gain on Sebi nod to set up MF; surges 69% in 4 months


Shares of hit a new record high of Rs 16,808, up 2 per cent on the BSE in the intra-day trade on Wednesday, having surged 10 per cent in the past two trading days, after the company said it has received an in-principle approval from Securities and Exchange Board of India (Sebi) for sponsoring a mutual fund. The stock was trading higher for the third straight day, up 12 per cent during the period.


Bajaj Finserv, in an exchange filing on Tuesday, said it has received approval from Sebi to set up a mutual fund. Accordingly, the company would be setting up an asset management company (AMC) and a trustee company, directly or indirectly i.e. itself or through its subsidiary.





is a financial conglomerate with a holding in the financing business (Bajaj Finance), life insurance (Bajaj Life Insurance) and general insurance (Bajaj General Insurance) business.


“Setting up of the AMC business will add value to Bajaj Finserv’s overall business. Since, the company already has a strong distribution network and client base through its lending and insurance subsidiaries, we believe this presents a good opportunity for high growth,” ICICI Securities said in a note.


Meanwhile, in the past four months, the stock has outperformed the market by surging 69 per cent as compared to a 17 per cent gain in the S&P BSE Sensex. A sharp run-up in the stock price has propelled its market capitalisation towards Rs 3 trillion-mark. At 09:30 am, market capitalisation stood at Rs 2.64 trillion, the BSE data shows.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link

Share Market Today
Logo