Sky Gold Ltd Acquires Starmangalsutra and Sparkling Chains

On June 22, 2024, Sky Gold Ltd, a leading jewellery company in India, announced the acquisition of two Mumbai-based companies: Starmangalsutra Private Limited and Sparkling Chains Private Limited. These acquisitions will help Sky Gold increase its market presence and expand its range of high-quality jewellery known for its expert craftsmanship.

Details of the Acquired Companies

Starmangalsutra Pvt. Ltd makes traditional and modern Mangalsutra jewellery, while Sparkling Chains Private Limited specialises in creating gold, silver, and other metal chains.

Financial Details of the Deal

Sky Gold acquired full ownership of both companies for ₹23.98 crore and ₹26.00 crore, respectively. The payment will be made by issuing 4,17,542 equity shares of Sky Gold at ₹1,197 per share, each with a face value of ₹10. These shares will be given to the current shareholders of Starmangalsutra and Sparkling Chains on a preferential basis.

Mr Mangesh Chauhan, the MD and CFO of Sky Gold Ltd, commented on the acquisitions, “The integration of Starmangalsutra and Sparkling Chains perfectly aligns with our growth objectives. These acquisitions are expected to enhance our margins through the combined synergies of the enterprise.“

He further added, “By consolidating our operations, we expand our total addressable market and increase product presence across numerous retail outlets. Mangalsutras have symbolised sanctity in Hindu tradition for centuries and have also evolved into a fashion statement in recent years, blending modern aesthetics with timeless Indian traditions. There is a growing demand for versatile mangalsutras and chains today. This acquisition will enable us to meet current demand and drive continued growth and innovation across our product portfolio.”

Financial Highlights

This acquisition follows a record-breaking fiscal year for Sky Gold Ltd, during which the company more than doubled its net profit and moved to a much larger facility in Navi Mumbai. In fiscal year 2024, Starmangalsutra had a turnover of ₹171 crore, and Sparkling Chains achieved ₹200 crore. Sky Gold Ltd is now working on integrating these new acquisitions to ensure a smooth transition for everyone involved.

About Sky Gold Limited

Sky Gold Limited is a top jewellery company. It specialises in designing, manufacturing, and marketing gold jewellery, remarkably lightweight pieces made from 18—and 22-carat gold.

On June 24, 2024, Sky Gold Limited’s share price opened at ₹1,528.60, touching the day’s high price of ₹1,528.60 as of 09:47 AM on the NSE.

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