By Me and a Colleague Yesterday: Morgan Stanley Fund Cuts Valuation of its Flipkart Holding

The story begins:

MUMBAI—A Morgan Stanley investment fund has reduced the valuation of its holding in Flipkart Internet Pvt. by 38%, as India’s leading e-commerce firm faces increased competition from U.S. rival Amazon.com Inc. and others.

In a U.S. regulatory filing this week, the Morgan Stanley Select Dimensions Investment Series fund said for the quarter ended Sept. 30, it held 1,969 Flipkart shares, which it valued at $102,644, or $52.13 a share.

For the preceding quarter, the fund—part of Morgan Stanley Investment Management, the company’s asset management division—reported the same number of shares in the startup, but valued them at $165,967, or $84.29 a share

In a statement, a Flipkart spokeswoman said the Morgan Stanley fund’s markdown was a “purely theoretical exercise” that is “not based on any real transactions.”

Related posts/stories:

By Me on Friday: How Amazon Has Taken India by Storm

Video: Me on Facebook Live Talking about Our Recent Amazon Story

Published by Newley

Hi. I'm Newley Purnell. I cover technology and business for The Wall Street Journal. I use this site to share my stories and often blog about the books I'm reading, tech trends, sports, travel, and our dog Ginger. For updates, get my weekly email newsletter.

Leave a comment

Your email address will not be published. Required fields are marked *