New Delhi: In the latest in what appears to be a series of troubles for India’s biggest e-commerce giant, Morgan Stanley, a mutual fund investor in Flipkart, has marked down the company shares by 15.5 per cent. After the markdown, Flipkart's shares have been revalued to $87.9 (Rs. 5,800 approx.) per share as of March 2016, down from $103.97 (Rs. 6,900 apporx) per share in December 2015.
This is not the first markdown by Morgan Stanley, earlier it had marked Flipkart down by 27 per cent in the previous quarter.
The mark down will act as salt on the wounds of Flipkart as two of its mutual fund investors earlier this month already negated the firm’s valuation. Fidelity and Valic had marked down the value of their holdings in the company by 20 per cent and T Rowe Price-managed mutual fund had marked down their holdings by 15 per cent.
Flipkart co-founder and CEO Binny Bansal had told ET in an interview that these markdowns are "mostly a theoretical exercise by small investors". He added "From our perspective, valuation is when we raise money. When we raise money, our value will be clear in the market."
Flipkart has been looking to raise its funding since late 2015 to maintain its leadership position in India against rival Amazon. The Bengaluru based-company had last raised capital last year in July at a valuation of $15.2 billion (Rs. 98,800 cr approx).
Flipkart's other key shareholders include New York-based investment firm Tiger Global, South African media giant Naspers, Singapore sovereign wealth GIC, Russian billionaire Yuri Milner's DST Global and Accel.