Sequoia Capital plans to sell its 10.18% stake in the parent firm of Indian garment brand Go Colours in a block deal worth 624 crores, sending Go Fashion shares down 5%.
The share price of Go Fashion fell about 5% on Monday after it was announced that venture capital firm Sequoia Capital would sell its whole 10.18% stake in the parent company of Indian garment brand Go Colours in a block sale today. On the BSE, Go Fashion shares opened at ₹1,150 per share.
The stake sale will have a floor price of ₹ 1,135 per share, which represents a 5% discount from the most recent closing price. According to a CNBC-TV18 report, the block deal will cost a total of 624 crores.
Sequoia Capital held 13.8% of Go Fashion at the end of the previous year. However, in December 2022, it launched a block transaction to sell a 3.7% stake for Rs 228 crore.
According to the BSE shareholding pattern, Sequoia Capital held 54,98,875 shares, or 10.18% of Go Fashion, as of March 31, 2023, through its India investment vehicle. Sequoia India is the largest venture capital firm in India at present, with a portfolio of less than $9 billion in assets under management.
Sequoia India’s portfolio includes Zomato, the world’s largest meal delivery firm, Freshworks- Saas Company, and the housing brand Oyo.
The announcement comes only days after the global venture capitalist announced on June 5 that it planned to split its US, China, and Southeast Asia-focused businesses into separate firms.
Sequoia Capital will sell 10.18% of its investment in Go Fashion in a block sale, according to reports.
According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, the stock had recently shown strong bullish traction but has been under pressure since Friday.
“Today, we saw a gap down backed by strong volumes; avoid new positions until we see stock prices settle; momentum is bearish with 1,100 as next support and 1,190 as resistance,” Bhosale warned.
