The acquisition aims towards expanding Sky Gold’s total addressable market (TAM) and increasing product presence
New Delhi: Mumbai-based jewellery company Sky Gold Ltd. has diversified its portfolio by acquiring Starmangalsutra Pvt. Ltd. and Sparkling Chains Pvt. Ltd., the company announced in a press release on Monday.
The acquisition aims to expand Sky Gold’s total addressable market (TAM) and increasing product presence across retail outlets.
The company has acquired a stake of Rs. 23.98 crore in Starmangalsutra Private Ltd. and Rs. 26 crore in Sparkling Chains Private Ltd. The consideration will be discharged by the issue of 4,17,542 equity shares of the company at an issue price of Rs. 1,197 having a face value of Rs. 10 each to the existing shareholders of M/s Sparkling Chains Private Limited and M/s Starmangalsutra Private Limited on a preferential basis.
Starmangalsutra Pvt. Ltd. is known for manufacturing traditional and modern mangalsutra jewellery and Sparkling Chains Private Ltd. focuses on chain jewellery made from gold, silver, and other precious or base metals.
“These acquisitions are expected to enhance our margins through the combined synergies of the enterprise. Mangalsutras have become a fashion statement in recent years, blending modern aesthetics with timeless Indian traditions. There is a growing demand for versatile mangalsutras and chains today. This acquisition will not only enable us to meet current demand but also drive continued growth and innovation across our product portfolio,” said Mangesh Chauhan, MD and CFO, Sky Gold Ltd.
Founded in 2008, Sky Gold Ltd., is a B2B company engaged in the business of designing, manufacturing and marketing gold jewellery. It specialises in lightweight jewellery of 18 & 22-carat gold. It makes plain gold jewellery, studded gold jewellery, diamond studded jewellery and Turkish jewellery. It works with jewellery retailers like Malabar Gold and Diamonds, Joyalukkas, Kalyan Jewellers, GRT Jewellers and Samco Gold along with large wholesalers. Sky Gold products are available at more than 2,000 showrooms across India. The company’s revenue crossed Rs. 1,745.5 crore in the financial year (FY) 2024.
The company plans to increase its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin by 50-75 basis points from 4.4% in FY 2024 and PAT (profit after tax) margin to 3% from the current 2.6% within the next 12 – 18 months. It also targets a revenue of Rs. 6,300 crore by FY27.
