🤑 Google and Walmart Boost Flipkart with $950M Funding Round

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Markets ended very flat on Friday despite an early-day trading surge. The performance of Landmark Cars surprised investors as shares plummeted by more than 5%. Elsewhere, Google is set to invest Rs 2,900 crore ($350Mn) in Flipkart, Tata’s Jaguar Land Rover could start producing the Range Rover in India which could potentially bring prices down by 20% and today is the last day for retail investors to subscribe to Awfis’ IPO.

Markets

• After reaching record highs on Thursday, Indian benchmark indices, which mostly traded positively, couldn't sustain their momentum and ended slightly lower in the red on Friday.

• Despite the lower close, both the Sensex and Nifty demonstrated strong momentum in early trading, surpassing the all-time high they had set the previous day.

Notable Gainer & Loser
Source: Moneycontrol

Bharat Dynamics Ltd (NSE: BDL) +10.44%

• Shares of Bharat Dynamics, a Miniratna defense PSU, surged by 10.44 percent to reach an adjusted 52-week high of Rs 1,658.95, continuing a nine-day rally that resulted in a 70 percent gain.

• The company traded ex-split on May 24, following its recent decision to split one equity share with a face value of Rs 10 into two shares with a face value of Rs 5 each.

• This rally has boosted Bharat Dynamics' year-to-date gains to over 80 percent, pushing its market capitalization beyond Rs 58,000 crore.

Landmark Cars Ltd (NSE: LANDMARK) (5.32%)

• Shares of Landmark Cars Limited dropped by more than 5 percent in Friday’s trade after the company reported a significant decline in net profit for the March quarter.

• The luxury car dealer's net profit plummeted by over 54 percent to Rs 11 crore in the fiscal fourth quarter, down from Rs 24.26 crore in the same period last year. Quarter-on-quarter, the net profit decreased by more than 40 percent from Rs 18.5 crore. Revenue growth also disappointed at just 1%.

Weekend Highlights

• Aditya Birla Group's market capitalization surpasses Rs 83,000 crore ($100Bn) milestone. (BS)

• Google invests Rs 2,900 crore ($350Mn) in Flipkart at Rs 29,000 crore ($36Bn) valuation. (EN)

• BharatPe and PhonePe settled all trademark disputes over the 'Pe' suffix. (EN)

• Jaguar Land Rover to produce iconic Range Rover in India, prices to drop by 20%. (Moneycontrol)

• Paytm withdraws general insurance license application, shifts focus to its insurance distribution business. (EN)

• SBI may add clauses to loan agreements to transfer higher provisioning costs to borrowers. (ET)

• Shipping Corporation of India and NMDC Steel selloff to gain momentum post-elections. (ET)

Featured Highlight
Sources: Inc42, Moneycontrol

Why has Google invested Rs 2,900 crore ($350Mn) in Flipkart?

• Google has joined forces with Flipkart as a minority investor, contributing an impressive $350 million to a $950 million funding round led by Walmart. This partnership values Flipkart at Rs 29,000 crore ($36Bn) and is set to undergo regulatory approvals, marking a significant milestone for both companies.

• Flipkart is on an exciting journey of diversification, venturing into fintech with services like UPI payments, personal loans, and insurance broking. The company is also gearing up to enter the quick commerce sector, positioning itself to compete with Blinkit, Instamart, and Zepto. With its grocery vertical experiencing remarkable year-on-year growth in FY24, Flipkart is poised for success in these new areas.

• Flipkart seems to be laser-focused on profitability in its new ventures as it gears up for an anticipated public listing. Plans are underway to redomicile to India before the IPO, showcasing a commitment to aligning with local regulatory frameworks. The company's reduced monthly cash burn and thriving travel business (Cleartrip) are key drivers in its progress toward profitability.

IPO / FPO / Issuances

This week’s mainboard IPO schedule

• For potentially India's biggest IPO, Hyundai selects Kotak and Morgan Stanley to finalize syndicate; aims to raise Rs 20,000 crore ($2.5Bn) to Rs 25,000 crore ($3Bn). (Moneycontrol)

M&A / PE

• Reliance Industries seeks CCI approval for Rs 70,000 crore ($8.5Bn) Viacom18 and Star India merger. (ET)

• Jio Financial Services plans Rs 36,000 crore ($4.33Bn) acquisition deal with Reliance Retail. (BS)

• Nazara acquires a 100% stake in subsidiary Nextwave for INR 21.6 crore. (Moneycontrol)

• Mankind Pharma, Dr Reddy's, Torrent Pharma in race to acquire JB Pharma from PE firm KKR. (Moneycontrol)

• EaseMyTrip and SpiceJet withdraw from Go First acquisition race. (ET)

• Sun Pharma to pursue mergers and acquisitions, licensing to expand its specialty business. (ET)

VC