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Sky Gold’s board approves a 9:1 bonus share issue to eligible shareholders, expanding equity. The company’s stock surged 256% this year, reflecting strong investor interest.
Sky Gold Ltd, a prominent player in the jewellery sector, announced on October 26 that its board has approved a bonus issue in a 9:1 ratio. Under this arrangement, shareholders will receive nine additional shares for every existing share held. The bonus shares, each valued at ₹10, aim to enhance equity and increase shareholder value.
Sky Gold has yet to disclose the record date, which will determine eligibility for the bonus issue. The company assured us that the record date would be announced soon, providing adequate notice for shareholders to be eligible for this substantial bonus. This is Sky Gold’s second bonus issuance following its 2022 1:1 bonus, indicating consistent shareholder engagement and commitment to value creation.
Sky Gold has seen significant gains in its share value, with the stock rising over 256% year-to-date. Recent trading sessions recorded a slight dip, with shares closing 1.04% lower at ₹3,550 on October 25. The stock has shown impressive performance, gaining 39.06% over the past month, 228.01% over six months, and 394.26% over the past year, marking it as one of the most robust performers in the jewellery industry.
However, it is essential to note that Sky Gold remains in Stage 4 of the Additional Surveillance Measures (ASM) framework. As a Stage 4 ASM stock, each trade in Sky Gold shares requires individual settlement and a full upfront margin. Additionally, the price movement is restricted to a 5% band on either side, which could impact trading flexibility for investors.
Sky Gold’s remarkable stock performance underscores the strong market interest and robust growth trajectory the company has maintained throughout the year. Despite the recent dip, the Sky Gold share price continues to reflect investor optimism, bolstered by the upcoming bonus issue. With market capitalisation exceeding ₹5,000 crore, Sky Gold’s expansion and bonus issue signal an optimistic outlook for shareholders.
Sky Gold’s decision to issue bonus shares at a 9:1 ratio is a strategic move to enhance shareholder value, complementing its impressive stock growth. Investors will closely monitor the upcoming record date and the company's ongoing performance within the ASM framework, anticipating further growth potential and stability in the market.
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