Shares of Bajaj Finserv, the financial arm of the Bajaj group, rose over 3% in opening trade on Thursday after the non-banking finance company received the market regulator's license to start its mutual fund business. The company has received the final registration from the Securities and Exchange Board of India (SEBI) to commence its mutual fund operations under Bajaj Finserv Mutual Fund, it said in an exchange filing.
Cheering the news, Bajaj Finserv shares opened 3.2% higher at ₹1,387.90 against the previous closing price of ₹1,344.60 on the BSE. The market capitalisation of the stock surged to ₹2.2 lakh crore. In comparison, the BSE Sensex was trading marginally lower at 59,404 levels, tracking muted cues from global peers.
“Bajaj Finserv Mutual Fund, with Bajaj Finserv Asset Management Limited (BFAML) as the Investment Manager, will soon offer a range of mutual fund products including equity, debt, and hybrid funds, both in the active and passive segments, to investors,” Bajaj Finserv said in the BSE filing post market hours on Wednesday.
BFAML, a 100% subsidiary of Bajaj Finserv, will create a tech-driven, multi-channel approach to serve investors across various touchpoints and geographies in order to build a future-ready asset management company, the company said.
Sanjiv Bajaj, Chairman & Managing Director, Bajaj Finserv, said, “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. With Ganesh Mohan at the helm, our mutual fund business will inspire a new approach to investing and sustained, long-term wealth creation.”
Ganesh Mohan, Chief Executive Officer, Bajaj Finserv Asset Management Limited, said, “With greater awareness among investors to stay invested over the longer term, it is an opportune time for the Group to build its mutual fund offering for investors.”
BFAML’s leadership team also includes Nimesh Chandan as Chief Investment Officer (CIO), an investment professional with over 22 years of experience in investing in Indian capital markets. He has been part of the mutual fund industry for 17 years; prior to joining BFAML, he was Head - Investments, Equities at Canara Robeco AMC.
Bajaj Finserv is one of India’s most diversified NBFC companies which provide financial solutions, including savings, financing, protection, and wealth creation, to over 100 million customers. With the addition of mutual funds to its portfolio of businesses, Bajaj Finserv will offer an array of innovative investment solutions using a differentiated approach to investing, including but not limited to, mutual funds (equity, debt, hybrid), portfolio management services and alternative investment funds, subject to regulatory approval.
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