Bajaj Finserv shares rise 3% after getting SEBI licence for MF business

Shares of Bajaj Finserv rose over 3% to Rs 1,387.9 in Thursday's trade on BSE after the company received licence from market regulator SEBI to start a mutual fund (MF) business. The company said it would soon come up with a range of mutual fund products, including equity, debt, and hybrid funds, both in the active and passive segments, for investors.

Bajaj Finserv Asset Management (BFAML) will be the investment manager of the MF business and Ganesh Mohan, who has been a part of Bajaj Finserv for 8 years as group head for corporate strategy, will lead the AMC as CEO.

The company said it would create a tech-driven, multi-channel approach to serve investors across various touchpoints and geographies to build a future-ready asset management company.

With the addition of MF to its diverse portfolio of businesses, Bajaj Finserv said it now offers the full range of financial services for customers through their life cycle.

“The approval from Sebi is strategically important for Bajaj Finserv as it enables the company to complete its suite of financial solutions for retail customers," said Sanjiv Bajaj, CMD, Bajaj Finserv.

In Wednesday's trade, promoters Rajivnayan Bajaj and Rishab Family Trust sold 7.43 lakh shares of Bajaj Finserv at an average traded price of Rs 1,350 per share, according to block deal data on NSE. The stake was purchased by other promoters Bajaj Sevashram Pvt Ltd (5.58 lakh shares) and Hercules Hoists ( 1.85 lakh shares).

At 9.57 am, the scrip was trading 0.8% higher at Rs 1,356 on BSE. On a year-to-date basis, the stock has plunged nearly 13%, while it has surged over 6% in the last month.

As per Trendlyne data, the highest target price for Bajaj Finserv goes up to Rs 1,850, while the average target price estimate is Rs 1,610, which shows an upside of 19% from the current market prices.

The consensus recommendation from 11 analysts for the stock is a Buy. Out of the 11 analysts covering the stock, eight have strong buy and buy ratings, while one has a sell rating, and the other two have hold ratings.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)