For that, you can use Adobe Media Encoder. Drag in the master file, set the format to H.264, and you can start with the preset “match source - high bitrate”. Then go into the video tab, and you can raise the bitrate even more to something like botox1 was suggesting, 15 mbps.

I assume the audio is stereo? If so, you should be able to leave the setting as is, which should be AAC 320 kbps.

If all you need is H.264 video with stereo audio, the resulting mp4 should be fine. If you want to add separate chapter markers and subtitles you can mux those in with something like mkvtoolnix, which would result in an mkv.