9:1 Bonus Issue: Gold Stock Hits 5% Lower Circuit; When Will 9 Free Shares Get Credited To Demat Account?

Sky Gold, a gems and jewellery stock, witnessed sharp selling pressure on December 18, so much so that it locked on its 5% lower circuit. There has been a sharp decline in Sky Gold stock from over Rs 4,400 to below Rs 470 in a span of two days, and the reason is bonus issue of 9:1. During bonus shares, the price of a stock is adjusted to the ratio.

Sky Gold turned ex-bonus on December 16, for its bonus shares ratio of 9:10. Meaning, the company will issue 9 (Nine) New Bonus Equity Shares of Rs. 10/- each for every 1 (One) Existing Equity Share of Rs. 10/- each fully paid.

Sky Gold aims to finish its bonus issuance within two months from the date of the Board approval i.e. on or before 24th December 2024.

The 9:1 bonus issue is the second largest issue by a listed company in 2024, with VST Industries 10:1 bonus issue being the largest of 2024.