Shares of Sky Gold Ltd. surged 5% and hit the upper circuit in Monday's trading session as the stock traded ex-bonus following the company's 9:1 bonus issue. The jeweller had earlier announced the issuance of nine fully paid-up bonus shares for every share held by shareholders, with Dec. 16 set as record date for the corporate action.
Following the surge, the stock was included in the Additional Surveillance Measure Stage 4 category. Under this, trading restrictions are imposed to safeguard retail investors amid significant price volatility.
Sky Gold, a Mumbai-based jeweller, had initially announced the bonus issue on Oct. 26, with the move being approved by shareholders through a postal ballot. Investors holding the stock in their portfolio on Dec. 13, are eligible to receive the bonus shares.
The company reported strong financial performance in the second quarter of the fiscal. Sky Gold's net profit soared fivefold to Rs 36.7 crore in the September quarter from Rs 7.3 crore in the same quarter last year, supported by robust revenue growth. The company's revenue nearly doubled to Rs 768.8 crore in the second quarter from Rs 396 crore in the previous fiscal.
Sky Gold Share Price Today
Sky Gold stock rose as much as 5% during the day to Rs 465.30 apiece on the NSE. It was locked in upper circuit, while the benchmark Nifty 50 was down 0.52% as of 1:27 p.m.
It has risen 320.31% in the last 12 months and 356.83% on a year-to-date basis. The relative strength index was at 69.78.
The one analyst tracking the stock has a 'buy' rating on it, according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 450, implying a downside of 3.3%.
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