Mutual fund investor Morgan Stanley has marked down the value of its invest-ment in MakeMyTrip by close to 6% in the quarter ended December 2016.
Sameer Ranjan Bakshi
Mutual fund investor Morgan Stanley has marked down the value of its investment in MakeMyTrip by close to 6% in the quarter ended December 2016. The shares in the travel portal were valued at $22.20 apiece in the October-December period of 2016, lower than the $23.59 per share in the three months to September 2016. The US-based fund has cut its stake in MakeMyTrip by about 60% over the past year, filings with the US Securities and Exchange Commission reveal.
Morgan Stanley held 5.40 lakh shares in the online travel portal in October-December 2015 but only 2.27 lakh shares in October-December 2016, the filings show. The fund’s move to lower the value of its stake comes despite the recent merger between MakeMyTrip with Ibibo in India, valuing the company at nearly $3.6 billion.
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MakeMyTrip (India), which contributes about 85% of the total revenues of its parent company MakeMyTrip, posted a net loss of Rs 351 crore for FY16; in FY15, it reported a profit of Rs 5.8 crore. Revenues, however, rose 22% to Rs 1,919 crore in FY16 over the previous year. Apart from air tickets, hotels, packages, rail tickets, bus tickets, car hire and ancillary travel requirements, the portal also facilitates purchase of travel insurance.
MakeMyTrip is facing competition from hotel aggregators like OYO Rooms, Fab Hotels and Treebo, while in the online booking space it competes with Yatra.com and Cleartrip.