Sky Gold Has Approved a Bonus Issue in the Proportion of 9:1

Founded in 2005, Sky Gold Ltd. is a prominent Indian firm that focuses on the design, production, and sale of gold and silver jewellery. Located in Thane, Maharashtra, the company provides a wide variety of jewellery items such as necklaces, rings, pendants, bracelets, earrings, and bangles. Additionally, Sky Gold creates custom jewellery to meet individual customer preferences. In addition to its manufacturing operations, the company engages in importing, exporting, distributing, and wholesaling jewellery, catering to a diverse clientele that includes wholesalers, showrooms, and retailers.

Sky Gold Board Approves 9:1 Bonus Issue

On Tuesday, the board of directors at Sky Gold Ltd. approved the issuance of bonus shares at a rate of nine for every one share currently held, with each share having a face value of Rs 10, as noted in an exchange filing. This decision followed unanimous approval from shareholders for the bonus issue via a postal ballot. The company has not yet announced the record date for the issuance. As of the end of September, Sky Gold had approximately 1.47 crore fully paid-up equity shares, according to data from the BSE, and the promoters hold a 58.24% stake in the company.

The Mumbai-based jeweller reported a dramatic increase in net profit, which reached Rs 36.7 crore in the second quarter of the current financial year, a five-fold rise compared to Rs 7.3 crore in the same quarter last year. Additionally, the company’s total revenue soared by 94%, reaching Rs. 768.8 crore during the quarter ending September 2024, up from Rs 396 crore a year earlier.

Sky Gold Managing Director Mangesh Chauhan Stated

“Our advancement demonstrates the effects of continuous product innovation, improved capacity utilization, and the synergies gained from our recent acquisitions of Sparkling Chains and Starmangalsutra, as well as the advantages from our recent Rs. 270 crore fundraising,” stated Mangesh Chauhan, Managing Director of Sky Gold.

He noted that these initiatives have played a key role in bolstering the company’s working capital, increasing its presence in important areas, and dramatically raising its addressable market share from 35% to 70%.

Sky Gold Ltd. Revenue

The stock has surged by 272% over the past year and 228% since the beginning of this year. Revenue increased from Rs. 786 crore in FY2022 to Rs. 2,466 crore in the twelve months leading up to September 2024. This represents a compound annual growth rate in sales of 88%, while profits saw growth of 165% in the same timeframe. The company has consistently achieved a solid return on equity (ROE) of 23% and has experienced remarkable stock price growth, rising by 317% in the last year.

Sky Gold Ltd.’s Stock Price is 5% Down

Sky Gold Ltd.’s stock is down 5% today and trading at Rs. 3,736.80 per share on the NSE ahead of the announcement.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.