Shares of this small-cap company, which specializes in designing, manufacturing, and marketing gold jewellery, attracted investor interest following the announcement of a 9:1 bonus share issue. This decision is anticipated to increase shareholder value and generate additional market attention.
Price Variation
In Wednesday’s trading session, Sky Gold Ltd‘s shares opened flat at Rs.3,933.00 per share, before falling 5 percent to Rs.3,736.80 per share, from its previous close of Rs.3,933.45 per share. Over the past five years, the shares have delivered over 1,560 percent returns.
What happened
Sky Gold Ltd’s board, in a meeting on Saturday, 26th October 2024, and through a resolution passed by members via postal ballot on 26th November 2024, has approved the issuance of bonus equity shares in a 9:1 ratio.
This means that for every 1 existing fully paid-up share of Rs.10 each, shareholders will receive 9 new fully paid-up bonus shares of Rs.10 each. These new shares will increase the company’s paid-up capital for each shareholder.
Revenue and Manufacturing Facility
Sky Gold Ltd. generates 9 percent of its revenue from exports and 91 percent from the domestic market. The company operates a manufacturing facility spanning 81,000 sqft with an annual production capacity of 9 tonnes. Its products are available through reputed Indian and international corporates and distributors, reaching 2,000 retail outlets across India and over 500 outlets globally.
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Financial Performance
In its recent financial update for the quarter ending September 2024, Sky Gold Ltd reported revenue from operations of Rs.769 crore, reflecting a 94 percent incline from Rs.396 crore in Q2 FY24. Moreover, net profits increased significantly by 428 percent to Rs.37 crore from profits of Rs.7 crore in the same period.
Shareholding Pattern
As per the October 2024 shareholding pattern, the promoters of Sky Gold Ltd hold a 58.24 percent stake, while Foreign Institutional Investors hold a 1.38 percent stake. Domestic Institutional Investors and Retail investors hold a stake of 6.31 percent and 34.07 percent, respectively in the company.
Company Overview
Sky Gold Ltd. is a well-established name in the Indian jewellery industry, focusing on the design, production, and distribution of 22 Karat gold jewellery. Unlike conventional jewellery companies, Sky Gold mainly functions as a B2B (business-to-business) supplier, providing its products to retailers instead of selling directly to consumers.
Written by – Siddesh S Raskar
Disclaimer
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