Sky Gold and Diamonds Limited (formerly Sky Gold Limited) has officially announced that it will acquire an entity in Dubai, United Arab Emirates (UAE) as part of its strategic efforts to enhance export revenue and strengthen its presence in the Middle East. This move, approved by the company’s Board of Directors on June 24, 2025, replaces an earlier plan to set up a new B2B office by establishing a wholly owned subsidiary (WOS) through acquisition rather than incorporation.

The Board concluded that incorporating a new entity was proving to be a time-consuming process, and instead opted for acquiring a newly registered entity in the UAE to expedite access to the regional market and reinforce Sky Gold’s global footprint.

The newly acquired entity, named M/s. SKY SOUK JEWELLERY TRADING L.L.C, is registered in Dubai and will serve as the company’s operational base in the Middle East. The proposed capital investment is approximately INR 12 Lakhs, and the entity has not yet commenced business operations, providing Sky Gold a clean slate for strategic business alignment and brand development in the region.

Strategic Intent Behind the Acquisition

Sky Gold's management has clearly outlined its intent to grow B2B operations and increase export revenue by directly servicing customers in the Middle East, particularly in Dubai, which is widely recognized as a global jewellery hub.

The entity will:

• Promote and develop Sky Gold’s products in the Middle East.

• Act as a communication bridge between the company and local clients.

• Be fully owned and controlled by Sky Gold and Diamonds Limited, making it a related party under SEBI (LODR) norms post-acquisition.

Board Meeting and Regulatory Compliance

The Board Meeting for this decision took place on June 24, 2025, between 2:30 PM IST to 3:15 PM IST. The company has duly complied with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements), 2015, and SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, for the purpose of public and investor transparency.

As per the SEBI-mandated Annexure I disclosure, Sky Gold has confirmed the following:

• The cost of acquisition will be based on face value per share.

• The entire shareholding (100%) will be subscribed through cash consideration.

• The timeline for completion is estimated at 2-3 months, subject to regulatory approvals and receipt of general trade licenses from Dubai authorities.

The acquisition does not fall under any existing related party transactions since the entity is being acquired afresh and will become related only post-acquisition due to ownership.

About the Acquired Entity

• Name: M/s. SKY SOUK JEWELLERY TRADING L.L.C

• Status: Newly incorporated, yet to commence operations

• Location: Dubai, UAE

• Purpose: Entry into the Middle Eastern jewellery market for exports and B2B operations

• Industry: Jewellery trading

Though the entity does not yet have an operating history or prior turnover, its strategic geographic location and regulatory status make it a valuable asset for Sky Gold’s international expansion plans.

Export and Market Diversification Strategy

This acquisition is an essential element in Sky Gold’s export growth roadmap. By setting up a base of operations in the UAE, the company aims to:

• Expand customer outreach in the Middle East.

• Streamline export logistics and local transactions.

• Position itself among leading exporters of gold and diamond jewellery in the region.

Dubai has historically been a lucrative market for Indian jewellers, offering access to both wholesale and retail buyers, high-volume trade shows, and tax-efficient trade zones.

Corporate Overview

Sky Gold and Diamonds Limited, headquartered in Navi Mumbai, is known for its extensive line of gold and diamond jewellery and has carved a niche in both domestic and international markets. The company has a track record of innovation, craftsmanship, and expanding market presence.

Over the years, Sky Gold has diversified its operations to include custom jewellery, wedding collections, and international B2B transactions, and this move to set up a wholly owned subsidiary in Dubai is another step in its strategic globalisation.

Conclusion

The Board’s decision to acquire SKY SOUK JEWELLERY TRADING L.L.C aligns with the company’s objective of fast-tracking international expansion and enhancing export revenues. It demonstrates Sky Gold’s commitment to strengthening its export business, streamlining entry into the Middle East jewellery market, and boosting shareholder value through targeted investments.

With a timeline of 2-3 months for completion, the company is set to mark a new phase in its international business operations. Investors and stakeholders can expect greater revenue opportunities and market visibility from the Dubai operations once fully integrated.

This acquisition reflects Sky Gold’s forward-looking approach and is a significant development that strengthens its position in the global jewellery market. The announcement has also been made available on the company’s website www.skygold.co.in for public access and investor reference.

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