9:1 Bonus Share: Multibagger Gold & Diamond Company Approves Acquisition of Mumbai-Based Bangle Manufacturer Ganna N Gold in Rs 225-Crore Share Swap Deal
The company has delivered a 1-year multibagger return of 226.51 per cent and a whopping 3,500 per cent in 3 years.
Sky Gold and Diamonds Limited has made a 100 per cent share swap agreement worth Rs. 225 crores to obtain Ganna N Gold Private Limited, a gold bangle manufacturer from Mumbai. Through this strategic move Sky Gold and Diamonds has been able to increase its product offerings while simultaneously expanding into machine-made and handmade bangle manufacturing without any cash outflow. The acquisition forms part of Sky Gold and Diamonds' wider expansion plan since the company has acquired its third entity in the last six months.
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Commenting on the development, Mr. Mangesh Chauhan, MD & CFO, Sky Gold and Diamonds Limited, said, “We are elated to welcome Ganna N Gold to the Sky Gold and Diamonds family. In line with our expansion strategy, we have now concluded our third acquisition in the past six months and in this process, explored synergies and strengthened margins. The acquisition of Ganna N Gold comes with its own unique advantages. First, being a credible job work manufacturer, the company will enable us further to improve our product portfolio. Second, being an all-share swap deal and zero inventory business nature, there will be no immediate requirement for any additional cash flows. And third, their existing income tax exemption status under section 115BAB will enable us to improve profitability on a consolidated basis. We are excited to add a new chapter in the exponential growth journey at Sky Gold and Diamonds with this acquisition.”
Sky Gold and Diamonds operates a state-of-the-art facility in Navi Mumbai with a manufacturing capacity of 9 tonnes and has 2,000+ retail outlets. The consolidated revenues for the first nine months of FY25 were Rs. 2,489.8 crore with EBITDA of Rs. 133.3 crore and PAT of Rs. 94.5 crore.
Sky Gold Limited operates in the gold jewellery sector, designing and manufacturing a wide assortment of 22 Karat gold products. The company operates as a B2B business supplying mid-range jewellery and boutique stores. The company operates in 14 categories with a fast-moving segment that has an average ticket size of Rs. 50,000 and offers an extensive design library and utilises 3D printing technology. The company maintains a fully hedged portfolio for raw materials and finished products, ensuring efficient inventory management. The manufacturing facility of Sky Gold Limited covers 81,000 sq. ft. and manufactures 3,000 items daily with distribution in more than 2,000 showrooms. The company has entered the USA market with its brand and plans to extend its reach to Southeast Asia, the Middle East and the USA. To boost design output and widen its metal basket, Sky Gold Limited intends to increase its design team and product offerings to 2 times by 2030.
As of April 17, 2025, the share price of Sky Gold and Diamonds Limited is Rs 351.05. The stock has recorded a 52-week high of Rs 488.95 and a 52-week low of Rs 104. With a market capitalisation of Rs 5,150 crore, the company has delivered a 1-year multibagger return of 226.51 per cent and a whopping 3,500 per cent in 3 years. The Price-Earnings (PE) Ratio of the stock is 47.64.
Among the major public shareholders, Llp holds a 5.65 per cent stake, followed by Acron Consultants Llp with 2.89 per cent and Inder Soni with 1.57 per cent.
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Disclaimer: The article is for informational purposes only and not investment advice.