Go Fashion, the parent entity of Indian clothing brand Go Colors, witnessed a 5% plunge in its share price in early trade on June 12 triggered by block deals. The Rs 705.5 crore deal involved approximately 62 lakh shares, equivalent to an 11.5% stake, changing hands at Rs 1,136 per share. 

Go Fashion shares opened at Rs 1,150 per share on the Bombay Stock Exchange (BSE). However, as the news of the block deal spread, the share price fell 4.5% to reach Rs 1,140.90 at noon.

Although the exact identities of the buyers and sellers were not immediately disclosed, according to a report by CNBC-TV18, the block deal also involved venture capital firm Sequoia Capital selling its entire 10.18% stake in Go Fashion at a floor price of Rs 1,135 per share, indicating a 5% discount from the last trading day’s closing price. This block deal was estimated to be worth Rs 624 crore in total.

This decision to offload its entire stake in the company aligns with Sequoia Capital’s previous reduction in its holdings. In December 2022, the venture capital firm sold 3.7% of its 13.8% stake in Go Fashion.

The move by Sequoia Capital to exit Go Fashion reflects its strategic restructuring plans. On June 5, the venture capital firm announced its intention to split its businesses focused on the United States, China, and Southeast Asia into separate entities.