Flipkart is experiencing its fifth marked down of the valuation invested by Morgan Stanley in a row. The valuation stands worth $5.37 Bn.
Morgan Stanley one of the largest investors in the company has curtailed the valuation with $50.52 per share, a 3.1% difference as compared to September 2016 with $52.13 per share. In June 2016 per share cost was worth $142.24 which shows more diminishing value of 64.5%. Morgan Stanley holds 566,827 shares in Flipkart at present.
Recently it was on the talks of raising funds at a valuation of $10-$12 Bn from the existing as well as potential investors including Microsoft, EBay, PayPal & Tencent when the markdown occurred uncertainly.
The company saw its last funds raised worth $700 Mn at a valuation of $15 Bn by Tiger Global Management & Qatar Investment Authority in the mid of 2015. The attrition in the valuation in the company’s share was also down by many investors of Flipkart, including T.Rowe Proce who curtailed the value to 4% to about $9.9 Bn with a reduction of share by 15% in Jan 2017 . In April 2016 Fidelity marked down 36.1% share and holds 5.56 Bn shares of the company.
“Markdown are a theoretical exercise by small investors. From our perspective, valuation is when we raise money. When we raise money, our value will be clear in the market” Binny Bansal, CEO, Flipkart told ET in an interview.
Bansal in an interview on 8 Dec as reported by Mint said” See, we are not a public company , so we don’t release our numbers publicly. Any investors who has an opinion on our valuation outside, including who are already invested in us, they are doing markdowns based on some public information which is accessible to everybody, As we always said, valuation is what will happen when a real transaction takes place and not just on papers.”
However the top level management has seen some exchanges, Binny Bansal is replaced by Kalyan Krishnamurthy who was one of the senior executives in Tiger Global as a new CEO.