A Vanguard-managed mutual fund has marked down the value of its shares in Flipkart by 25 per cent, the fund has disclosed last month. This is the sixth markdown for the Indian e-commerce behemoth.
A fund managed by Morgan Stanley has reduced the value of its investments twice while Fidelity Rutland Square Trust II, Valic Co., and T. Rowe Price have each lowered the value once.
This latest markdown has pegged Flipkart’s valuation at $11.4 billion, as compared to the $15.2 billion when it last raised capital in July 2015.
Vanguard has marked the value of their Flipkart shares at $102.6 as of March 2016, down from $136.87 as of December 2015.
Despite the fact that Vanguard Investment holds only a very small share in Flipkart (a total of less than $6 million), regular markdowns by investors are not good for the company’s health.
Morgan Stanley, in its second valuation mark down, had slashed the value of its stake in Flipkart by 15.5 per cent to $87.86 at the end of March 2016 compared with $103.97 three months earlier. In the first instance, the company had reduced the valuation by over 27 per cent in February.
In April, American mutual fund T Rowe Price knocked down the holding value of its investment in Flipkart by 15.1 per cent. In early May, US mutual funds Fidelity Rutland Square Trust II and Valic Co. reduced the value of their holdings in Flipkart by 40 per cent and 29 per cent, respectively.
According to Morgan Stanley’s latest markdowns, Flipkart was valued around $9.4 billion while T. Rowe Price valued the firm at about $12.9 billion. While Valic put the overall valuation a tad less than Morgan Stanley, Fidelity thinks the e-commerce company is valued less than $10 billion.