Sky Gold Limited is engaged in the business of designing, manufacturing, and marketing of Gold jewelry. It is Mumbai based company. Now, let’s start with the issue detail of the company. After that, an analysis of Sky Gold Limited IPO Review will be given.
About Sky Gold Limited IPO Review Issue Details :
- IPO Opens on – September 18, 2018.
- IPO Closes on – September 21, 2018.
- Issue Price – Rs. 180 Per Equity Share.
- Issue Type – Fixed Price Issue IPO.
- Face Value – Rs.10 per Equity Share.
- Min Order Quantity – Nil.
- Market Lot – Nil.
- Retail Allocation – 50%.
- Issue Size – 1,420,000 Equity Shares of Rs. 10 aggregating up to Rs. 25.56 Cr.
- Listing Exchange At – BSE SME Exchange.
- Draft Prospectus – Click Here.
Objectives of the issue of the Company :
- Repayment of Loans is the main objective of Sky Gold Limited.
- Funding working capital requirement of this company.
- Company’s funding expenditure for General Corporate Purposes.
About The Company –
- Sky Gold Limited is incorporated in 2008.
- This company operates from a 2,740 sq.ft. sole manufacturing facility located in Mulund, Mumbai.
- The manufacturing facility of Sky Gold Limited is used to make casting based jewelry using rubber dye, wax molds, and machines.
- This company has its central sales office at Mumbai.
- Sky Gold Limited is deal in 22 Karat gold jewelry.
- This company provides an extensive range of designs which is used studded American diamonds and colored stones in many of the jewelry products.
- Sky Gold Limited offers a wide range of products from gold jewelry for special occasions likes weddings, festivals to daily wear jewelry for all ages.
- This company caters to a variety of customers across mid-market and value market segments.
- The products of Sky Gold Limited are designed by the in-house team of the creative designers and freelance designers.
- The product range of this company includes necklaces, rings, pendants, bracelets, earrings and customized jewelry based on customer demand.
Products of Sky Gold Limited :
- Double Hook Pendant.
- Fancy Pendant.
- Gents Rings.
- God Pendant.
- Ladies Kada.
- Ladies Rings.
- Letter Pendant.
- Single Hook Pendant.
Business strategies of the company :
- In order to increase the level of business operation, expand the fund capacity.
- Improving Debt – Equity Ratio.
- Expand the Geographical Reach.
- Adding new designs to the portfolio.
- Focus on consistently meeting quality standards.
- Leveraging the Market skills and Relationships.
- Increasing Operational efficiency.
Competitive Strengths of Sky Gold Limited :
Wide product range :
This company specializes in casting based 22 Karat gold jewelry studded with American Diamonds and colored stones. These studded jewelry are extremely popular as the American Diamonds and colored stones are much cheaper than solitaire and precious or semi-precious gems.
Well-Efficient employee and Innovative management base :
Sky Gold Limited is managed by a team of experienced, well trained and trustworthy personnel. This company believes that their management team’s experience and their understanding of jewelry business will enable to take advantage of both current and future market opportunities. The business is including significant competition, reliance on independent agents, and fluctuations in gold jewelry and bullion prices.
Strong understanding of customer preference :
This company is offer jewelry designs based on the general trends and specific customer requirements. The preferences and tastes of Sky Gold coupled with a variety of designs. The jewelry offered and provides with a competitive advantage in the markets in which the company currently operate.
Established marketing setup :
Sky Gold Limited have established a strong customer base and an unyielding marketing setup. Their success lies
in the strength of their relationship with their customers. The customers have been associated with this company for a long period.
Fully integrated manufacturing facility :
All the core jewelry of this company manufacturing activities in-house. There is no substantial dependence on
job-work or external manufacturing. Except for a small process of CAM which provides this company with a Master sample of their jewelry design.
The strategic location of the manufacturing facility and sales offices :
This company’s manufacturing facility is located in Mulund, Maharashtra. Their sales offices are located in Mumbai, Kerala, and Telangana.
Gala No. 101,102,103,
1st Floor Raja Industrial Estate,
Jain Mandir Road,
Sarvodaya Nagar Mulund West Mumbai.
The promoters of Sky Gold Limited :
- Mr. Mangesh Chauhan, aged 39 years, is the Promoter, Managing Director and Chief Financial Officer of this company.
- Mr. Mahendra Chauhan, aged 39 years, is the Promoter and Whole-time Director of this company.
- Mr. Darshan Chauhan, aged 34 years, is the Promoter and Whole-time Director of this company.
The Board of Directors of this company :
- Mr. Mangesh Chauhan, aged 39 years, is a Managing Director and Chief Financial Officer of this company.
- Mr. Mahendra Chauhan, aged 39 years, is a Whole-time Director of this company.
- Mr. Darshan Chauhan, aged 34 years, is the Whole-time Director of this company.
- Mr. Dilip Gosar, aged 51 years, is the Non-Executive Independent Director of this company.
- Mrs. Maitri Patel, aged 26 years, is the Non-Executive Independent Director of this company.
- Mr. Loukik Tipnis, aged 31 years, is the Non-Executive Independent Director of this company.
The shareholders of Sky Gold Limited :
- Mr. Mangesh Chauhan.
- Mr. Mahendra Chauhan.
- Mr. Darshan Chauhan.
- Mangesh Chauhan HUF.
- Mahendra Chauhan HUF.
- Darshan Chauhan HUF.
- Mr. Jayesh Sanghvi.
Company Financials :
To analyze the Sky Gold Limited IPO Review, the financial statement of the company is necessary.
Sky Gold Limited IPO Review :
Now, come to the most significant part of the article, Sky Gold Limited IPO Review. The brief overview of company financials has taken from the prospectus of the company. Before issuing IPO, a company releases its DRHP or draft red herring prospectus. The data is a small view of the company’s profit-loss statement. After a prolonged average return, the company reaches a high level in the last financial year 2017-18. PAT in the FY18 stands at 262.64 lakhs. However, let’s see the other fundamental ratios of the company. According to the year 2017-18, basic and diluted earnings per share (EPS) is at 6.65. The company has not revealed price to earnings or P/E ratio in their prospectus. Return on Net Worth (RoNW) is 19.48% and NAV/Share is 34.11. Both of the ratios are based on the latest financial year data. If you notice carefully, you can see an abrupt increase in the level of growth of the company. Hence, the growth is quite doubtful. Therefore, it is advisable to crosscheck the data twice before making any investment. Otherwise, the Sky Gold Limited IPO Review is NEUTRAL.
Still, they have not released min order quantity and market lot. Before releasing the IPO, we will get back with an updated data.
Categories: IPO Review