A mutual fund managed by Morgan Stanley has marked down the value of Flipkart's shares by 27%, signaling that global investors believe India's largest internet company is overvalued. The markdown comes even as mutual funds slash the value of some of Silicon Valley's most high-profile startups like messaging app Snapchat and data-analysis company Palantir Technologies Inc.
As recently as last week, Flipkart had said in a press statement that it is valued at $15.2 billion right now. A 27% fall in Flipkart's share price would imply Flipkart's valuation now is around $11 billion.
Morgan Stanley had picked up shares in Flipkart as a part of its series D round of funding in 2013, when the Bengaluru-based e-tailer had raised $360 million in two tranches. Currently it holds between 1-2% stake in the company.
The Morgan Stanley fund said in its regulatory filings with SEC that it had valued Flipkart stake at $58.93 million in December 2015, as compared to $80.62 million in June 2015. This translates into per share value of Flipkart coming down to $103.97 as of December 2015, down from $142.24 per share as of June 2015 and $117.96 per share as of December 2014.
Flipkart's other key shareholders are New York-based investment firm Tiger Global Management, South African media giant Naspers, Singapore sovereign wealth GIC, Russian billionaire Yuri Milner's DST Global and early stage investment firm Accel.
The mark down by Morgan Stanley comes at a time when Flipkart has been in talks with investors to raise about $1.4 billion (Rs 9,200 crore), ET reported last month.
Flipkart's frenetic fundraising some $3.4 billion in total so far has been a sign that company is not ready for a public offers. Flipkart has said that it is aiming to sells goods worth $12 billion in the year to March 2016, a three-fold increase compared with last year.