Morgan Stanley cuts Flipkart value under $10 billion; a 15.5% markdown


New Delhi : A mutual fund managed by Morgan Stanley has marked down the value of its shares in the Indian e-commerce major by 15.5 %, valuing it at under $10 billion. Morgan Stanley Institutional Fund Inc, in its disclosure to the US Securities and Exchange Commission, has marked the value of their Flipkart holding to $87.86 per share as of March 31, 2016, down 15.5 per cent from $103.97 per share as of December 31, 2015 and down from $142.24 apiece as of June 30, 2015. The latest exercise values Flipkart at $9.39 billion, compared with a $15.2-billion valuation it had as per its latest fund-raising round in June.

According to reports, the Bengaluru- based firm had raised capital in July last year at a valuation of over $15 billion. Comments could not be obtained from Flipkart as emailed query remained unanswered. Morgan Stanley had picked up stake in Flipkart in 2013. As per reports, Flipkart has been facing funding crunch and falling valuations. It has also deferred joining dates for campus hires from IIM Ahmedabad and IITs citing restructuring of its businesses.