After facing a successive markdown in the past few months by its investors, the valuation of India’s largest e-commerce firm, Flipkart has been marked up by Valic Co., a mutual fund investor in the firm.
Valic has marked up the value of its shares in Flipkart by 10 per cent, valuing them at $108.04 apiece at the end of the quarter ended May, as against $98.19 in the previous quarter, a report said citing a regulatory filing with the US Securities and Exchange Commission (SEC).
This values Flipkart at around $11.5 billion, the report said.
Prior to this, Valic had marked down the value of their holdings in the e-tailer for two consecutive quarters by 20.2 per cent and 12 per cent respectively.
Valic’s mark up comes just a month after US- based Fidelity Rutland Square Trust II mark up. The latter marked up the valuation of Bangalore-based company by 2.7 per cent to $84.29 per share in May, against a value of $82 apiece in February.
Though Valic holds a very small amount of Flipkart’s stock, it was among the four funds that marked down the valuation of Flipkart in the past.
In the last few months, Flipkart’s valuation has seen multiple markdowns. For instance in July, Global asset manager T. Rowe Price Group Inc. reduced the value of its stake in Flipkart by a fifth, its second cut in four months. That valued Flipkart at $10.3 billion. The firm had earlier cut the value of its stake in Flipkart by 15 per cent in April.
Recently, US-based investment firm Vanguard Group marked down the value of its holding in Flipkart by 22 per cent, from $136.87 a share as on 30 September 2015 to $106.65 as on 31 March, according to regulatory filings with SEC, cutting the firm’s valuation to $11 billion.
In May, Morgan Stanley Mutual Fund Trust, a mutual fund investor in Flipkart, lowered its estimate of the online retailer’s valuation by 15.5 per cent for the second successive quarter in a row, implying that it valued the company at $9.39 billion.
However, Flipkart CEO Binny Bansal had previously said that (markdowns are) a theoretical exercise by small investors and they actually come into play when a company goes for a fresh round of fundraising.