 "Sky Gold shares lock in 5% upper circuit on bonus issue's record date")
Shares of Sky Gold were locked in 5 per cent upper circuit at Rs 465.70 per share on the BSE in Monday’s intraday deals. This came after stock began trading on an ex-bonus basis.
This comes ahead of the company’s 9:1 bonus share issue, with December 16, 2024, being set as the record date to determine the eligible equity shareholders for the bonus shares.
“We wish to inform you that the company has fixed Monday, 16th December 2024 as the Record Date for the purpose of determining the equity shareholders of the Company eligible for bonus equity shares of the company,” the company had said in an exchange filing.
Earlier the company’s board had approved the issuance of bonus shares in the ratio of 9:1, i.e. nine new fully paid-up equity shares of Rs. 10 each for every one existing fully paid-up equity share of Rs 10 each, held by the shareholders of the company.
What is a bonus issue?
A bonus share issue occurs when a company distributes additional shares to its existing shareholders at no cost. These shares are issued from the company’s profits or reserves, typically in proportion to the number of shares a shareholder already owns.
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This allows shareholders to receive extra shares, increasing their total holding without requiring any payment.
Sky Gold Limited, based in Mumbai, designs, manufactures, and sells a diverse range of gold jewelry, including studded American diamonds and colored stones, suitable for both daily wear and special occasions like weddings.
The company’s manufacturing facility in Mulund, Mumbai, uses rubber dye, wax molds, and machines for casting its jewelry. With central sales offices in Mumbai and additional offices in Kerala and Telangana, Sky Gold has also expanded into exports. Founded as a private limited company in 2008, it transitioned to a public limited company in 2018.
The company has a total market capitalization of Rs 6,824.37 crore. Its shares are trading at a price to earnings multiple of 81.59 times and at an earning per share of Rs 54.36.
At 10:36 AM; the shares of the company were up 5 per cent at Rs 465.70 a piece. By comparison, the BSE Sensex was trading 0.36 per cent lower at 81,981.67 level.