Go Fashion shares tanked 5 per cent in Monday’s trade amid heavy volumes. Against a two-week volume of 2,492 shares, the stock saw 5.28 lakh shares changing hands on BSE on likely stake sale by Sequoia Capital.
Even though News18.com could not immediately identify the sellers and buyers, CNBC-TV18 earlier reported that Sequoia Capital was looking to sell its stake in the company.
At 9.19 am, shares of Go Fashion India were trading at Rs 1,135.95, down 4.91 percent on the National Stock Exchange.
CNBC-TV18 reported on June 11 that Sequoia Capital was looking to sell up to 10.18 percent stake in Go Fashion. The stake sale was likely to be pegged at a floor price of Rs 1,135 a share, taking the deal value to Rs 624 crore, the report, citing sources, said.
Sequoia Capital, till last year, held a 13.8 per cent stake in Go Fashion. It had, however, launched a block deal in December 2022 to sell a 3.7 per cent stake for Rs 228 crore. The Go Fashion move came days after Sequoia Capital decided to split its businesses in China, India and Southeast Asia operations into two independent firms, which will be run without any involvement of Sequoia going forward.
Sequoia Capital held nearly 55 lakh Go Fashion shares accounting for 10.18 per cent stake in Go Fashion as of March 31, 2023. Shares of Go Fashion have jumped 8.4 per cent in the last one month. They are up 21.2 per cent in the last one year.
Go Fashion reported a 20 per cent rise in net profit at Rs 15 crore for the March quarter compared with Rs 12 crore in the year-ago quarter. The company’s total income for the quarter rose 34 per cent to Rs 160 crore compared with Rs 119 crore in the corresponding period of last year.
Sequoia’s China firm would be named Hongshan in English. India and Southeast Asia will be renamed as Peak XV, which will manage more than 400 portfolio companies and assets of $9.2 billion.
Sequoia raised $2.8 billion last year to invest in Indian and Southeast Asian startups, but the majority $2.5 billion remaining will be invested by Peak XV, which is now India’s biggest venture capital firm being run by Sequoia’s former managing directors in the region.
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