Swan Energy shares climb 4% on Rs 3,000 crore fundraise via QIP route

Shares of Swan Energy Ltd on Thursday traded higher after company said it has raised Rs 3,000 crore through the Qualified Institutions Placement (QIP) route. The stock moved 3.58 per cent up to trade at Rs 746. The QIP was priced at Rs 670 per share, inclusive of a premium of Rs 669 per share.

"The QIP garnered significant interest from qualified institutional investors, including Quant Mutual Fund, SBI Life, LIC, LIC Mutual Fund, Tata Mutual Fund, Infini Mutual Funds, SBI General Insurance, BNP Paribas Mutual Fund, Nomura, Diamond Asia, Bank of India Mutual Fund, ITI Mutual Fund, Goldman Sachs, Future Generali, Anand Rathi, and other domestic and foreign institutions and family offices," Swan Energy stated.

It mentioned that the funds raised through the QIP will be strategically deployed towards the modernisation of the recently acquired erstwhile Reliance Naval and Engineering Ltd (RNEL) shipyard at Pipavav.

Additionally, a portion of the funds will be allocated for project expansion and debt reduction, it further said.

Paresh Merchant, Executive Director at Swan Energy Limited, said, "We are delighted by the enthusiastic response from both domestic and foreign institutional investors. Taking management control of RNEL, the largest shipyard in India, aligns with our vision to emerge as a leading private player in the manufacture of defence, commercial, and oil & gas vessels. Our goal is to establish ourselves as the foremost player in ship repairing and a hub for global manufacturing in the Asia Pacific region."

On technical setup, the counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 63.13. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 4484.22 against a price-to-book (P/B) value of 14.85.

Bourses BSE and NSE have put the securities of Swan Energy under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

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