Sky Gold shares rise 3% as arm to acquire 51% stake in Shri Rishab Gold

Sky Gold and Diamonds shares rose 3.2 per cent, logging the day's high at ₹344.8 per share on BSE. At 10:40 AM, Sky Gold's share price was up 1.93 per cent on BSE at ₹340.5 per share. In comparison, the BSE Sensex was up 0.57 per cent at 84,434.82.

 

The market capitalisation of the company stood at ₹5,187.94 crore. The 52-week high was at ₹488.95 per share, and the 52-week low was at ₹245.95. 

Why were Sky Gold shares in demand?

The buying on the counter came after the company's subsidiary Starmangalsutra approved a proposal to enter into a non-binding agreement to acquire a 51 per cent stake in Shri Rishab Gold. 

 

 

The proposed acquisition aims to expand the customer portfolio and deepen market penetration in the high-growth traditional mangalsutra jewellery segment. It is expected to be completed within 12 months, subject to relevant approvals. The approximate value of the acquisition is estimated at ₹10 crore. 

 

"We wish to inform that Starmangalsutra Private Limited, a wholly owned subsidiary of Sky Gold & Diamonds Limited, has approved a proposal to enter into a non-binding agreement to acquire 51 per cent in Shri Rishab Gold, a partnership firm engaged in the business of jewellery manufacturing," the filing read. 

 

The acquisition will also align Shri Rishab Gold’s operations with Starmangalsutra’s robust governance standards and efficient working capital model, enhancing synergies across product development, manufacturing, and distribution.

 

“This acquisition reinforces our commitment to building leadership in specialized jewellery categories. Shri Rishab Gold’s reputation in the mangalsutra space perfectly complements our operational scale and design strength, helping us drive category growth and long-term value creation," said Mangesh Chauhan, managing director, Sky Gold & Diamonds. 

 

Shri Rishab Gold is a partnership firm, known for its strong presence in the mangalsutra jewellery segment. Shri Rishab Gold has a rich client base that includes one of India’s largest jewellery brands, according to the filing. 

 

Sky Gold and Diamonds Limited is a leading manufacturer of gold jewellery, renowned for its precision craftsmanship and innovative design. Established in 2008, the company operates from a 1,30,000sq. ft. advanced facility in Navi Mumbai, equipped with German and Italian machinery and capable of processing 1200 kg of gold per month.