Sky Gold Approves Bonus Issue Of Nine Shares For Every One Held
The approval came after Sky Gold received unanimous shareholders' nod for the bonus issue through postal ballot.
Sky Gold Ltd.'s board of directors approved on Tuesday the issuance of bonus shares in the proportion of nine shares for every one held of a face value of Rs 10, according to an exchange filing.
The approval came after the company received unanimous shareholders' nod for the bonus issue through postal ballot. The record date has not been disclosed.
The company had approximately 1.47 crore fully paid up equity shares as of the quarter ended September, as per shareholding data on the BSE. The promoter Chauhan family's stake is 58.24%.
The Mumbai-based jeweller reported a five-fold jump in net profit at Rs 36.7 crore in the second quarter of the current financial year on robust income. Its net profit stood at Rs 7.3 crore in the same quarter in the previous fiscal. The total revenue surged 94% to Rs 768.8 crore during the quarter ended September 2024 from Rs 396 crore a year ago.
"Our progress reflects the impact of ongoing product innovation, enhanced capacity utilisation, and synergies from recent acquisitions of Sparkling Chains and Starmangalsutra, along with the benefits of our recent Rs 270 crore fundraise," Sky Gold Managing Director Mangesh Chauhan said.
These initiatives have been instrumental in strengthening the company's working capital, expanding the footprint in key regions, and significantly boosting addressable market share from 35% to 70%, he said.
Shares of Sky Gold closed 5% lower at Rs 3,933.45 on the NSE ahead of the announcement, compared to a 0.11% decline in the benchmark Nifty 50. The stock has risen 272% in the last 12 months and 228% on a year-to-date basis.
The sole analyst tracking the company has a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 338%.
