📜 BSE-Listed Companies Surpass $5 Trillion Market Cap for the First Time

Hello,
Markets closed the day flat but the market cap of BSE-listed companies hit $5 trillion for the first time ever yesterday, despite Sensex still being 1.66% below its all-time high.
Today’s feature includes reports of PE fund KKR looking to sell its majority stake in Lighthouse Learning aiming for a gargantuan 5x valuation increase in just 5 years.

Markets

• Closing the day flat, Indian stock market benchmarks, the Sensex and the Nifty 50, experienced cautious trading on Tuesday, May 21, with most stocks declining.

• Amid mixed global cues, the Indian indices opened marginally lower, with the Nifty slipping below 22,500 and extending losses in the first half. However, the market recovered in the second half, driven by buying in metal, power, oil & gas, and PSU bank stocks.

Notable Gainer & Loser

Hindustan Zinc Ltd (NSE: HINDZINC) +19.99%

• Shares surged 20 percent, extending gains for the fifth straight session, driven by expectations that the sharp rise in metal prices will enhance the company's margins. Additionally, with stable production costs and higher selling prices, increased profits per unit sold are anticipated.

Delhivery (NSE: DELHIVERY) (10.31%)

• Shares of Delhivery Ltd fell by as much as 12 percent during Tuesday's trading session after the company reported a sequential decline in the March 2024 quarter (QoQ), slipping into the red.

• The stock was further impacted by the resignation of key managerial personnel. Despite this, brokerage firms remain mostly positive on the stock following the earnings report.

Yesterday’s Highlights

• Kalpataru Projects International secures Rs 9,550 crore ($1.14Bn) contracts from Aramco to expand the gas supply network in Saudi Arabia. (ET)

• JSW Cement to invest Rs 3,000 crore ($360Mn) in establishing a new cement manufacturing unit in Rajasthan. (ET)

• Smartphone company HTech plans to raise Rs 832 crore ($100Mn) to expand its operations. (MT)

• Surat-based IVY Growth introduces a Rs 250 crore ($30Mn) venture capital fund named Arigato Capital. (YS)

• SriMandir’s parent company, AppsForBharat, is in discussions to raise ~Rs 120-165 crore ($15-20Mn). (EN)

• UGRO Capital greenlights the issuance of Non-Convertible Debentures (NCDs) totalling up to Rs 135 crore ($16.2Mn). (YS)

• Singapore-based ThinKuvate initiates a Rs 100 crore ($12Mn) fund dedicated to investments in India. (YS)

• SanchiConnect and YourNest collaborate to launch a Rs 4.16 crore ($500k) deep tech accelerator program. (YS)

• Upstox enters the insurance distribution market. (EN)

• Pine Labs gets approval from Singapore Court to relocate its headquarters to India (EN)

• Union minister says “India to have the world’s second-largest urban metro system over next 2 years”. (ET)

• Caret Capital, the VC fund, introduces an accelerator program. (ThePrint)

Featured Highlight

KKR Aims for 5x Valuation in Five Years with Sale of Lighthouse Learning

• In just five years, PE fund, KKR & Co is aiming for a 5x valuation with the sale of Lighthouse Learning, targeting $1-1.2 billion. This impressive growth and value creation highlight the effectiveness of KKR's strategic investment, which began with acquiring a controlling stake in 2019. The planned sale process, set to begin next week and overseen by JP Morgan and Avendus, demonstrates KKR's ability to significantly enhance the value of its investments in a relatively short period.

• Lighthouse Learning has seen substantial expansion, now operating over 1,350 preschools and 45 schools. By December 2023, its student base had grown to 1.5 lakh, with revenues expected to surpass Rs 1,000-1,200 crore by the end of fiscal year 2024. This growth is supported by significant investments in infrastructure and increasing student enrolment across both the preschool and K-12 segments.

• The success of KKR's investment in Lighthouse Learning underscores the potential of private equity deals in India, showcasing how strategic investments in quality education and infrastructure can lead to substantial returns.

IPO / FPO / Issuances

This week’s IPO Schedule (Mainboard only)

• Co-working space operator Awfis Space Solutions Ltd will enter the capital market today with its initial public offering (IPO) to raise up to Rs 599 crore. Here are 10 things to know before subscribing. (Moneycontrol)

M&A / PE

• KKR purchases a minority share in Infinix Services, a provider of healthcare revenue solutions for Rs 1250 crore ($150Mn). (YS)

• Arpwood Partners secures a majority stake in SEWA Grih Rin through a Rs 680 crore investment. (YS)

• HDFC Bank exits Protean eGov Tech, selling its entire stake for Rs 150 crore. (BS)

• US payments giant Stripe is in discussions with SBI to acquire a significant stake in its payments arm. (BL)

• CashFlo is poised to acquire LogiTax as part of its venture into enterprise business. (EN)

• Hindujas' acquisition of Reliance Capital encounters a financing hurdle. (ET)

• PE fund, JV Ventures enters the healthcare infrastructure sector, planning to open 75 medical centres over the next five years. (EH)

VC