Bajaj Finserv shares 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 had received in-principle approval from the 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 had 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.

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Bajaj Finserv 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 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 capitalization towards the Rs 3 trillion mark. At 09:30 am, Bajaj Finserv market capitalization stood at Rs 2.64 trillion, the BSE data shows.

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Bajaj Finserv Ltd-View Detailed Analysis