- Bajaj Finance market cap stock overtakes that of SBI after the reports.
- Indian financial services company Bajaj Finserv got SEBI nod to start a mutual fund business.
- The news triggered the shares of Bajaj Finserv and its subsidiary Bajaj Finance to become the top two gainers on the Nifty 50 index.
- The market capitalisation of Bajaj Finance reached ₹4.22 lakh crore while that of Bajaj Finserv stood at ₹2.61 lakh crore.
Shares of financial services companies Bajaj Finserv and Bajaj Finance surged as the former received the market regulator’s nod to start a mutual fund business. The shares of Bajaj Finserv reached its one year high of ₹16,584.
The company had filed the application on September 28, 2020 to market regulator Securities and Exchange Board of India (SEBI).
Bajaj Finance is the subsidiary of Bajaj Finserv.
“The Company would be setting up an asset management company and the trustee company, directly or indirectly i.e., itself or through its subsidiary in accordance with applicable SEBI Regulations and other applicable laws,” said Bajaj Finserv in an exchange filing.
Another financial services company Zerodha is also waiting for the regulator’s nod to launch a mutual fund business. Frontline Capital Services, Wizemarkets Analytics, Unifi Capital, Alchemy Capital Management and Helios Capital Management are some other companies in line waiting for SEBI’s approval.
The ₹35 lakh crore mutual fund industry has 44 mutual fund houses with HDFC Mutual Fund and SBI Mutual Fund being the top two asset management companies.
Shares of Bajaj Finserv’s subsidiary Bajaj Finance gained 4% on the news to reach a 52 week high of ₹7,049. Moreover, the market capitalisation of the company went up to ₹4.22 lakh crore crossing India’s biggest lender State Bank of India’s market cap of ₹3.71 lakh crore.
Bajaj Finance and Bajaj Finserv were among the top two gainers on the Nifty 50 index today.