Swan Energy shares surge 19% to hit one-year high today; here's why

Shares of Swan Energy Ltd rose sharply on Friday, extending their gains for the third straight session. The stock jumped 18.58 per cent to hit a 52-week high price of Rs 390.20. It eventually settled 12.13 per cent higher at Rs 368.95. Today's sharp up move in the share price came after the company, in an exchange filing, said that it has completed the upfront payment for acquisition of Reliance Naval and Engineering Ltd (RNEL) through National Company Law Tribunal's (NCLT's) resolution plan. Reliance Naval was once controlled by Anil Ambani.

"Swan Energy is a strategic partner of Resolution Applicant, i.e., Hazel Mercantile Limited (HML), through a Special Purpose Vehicle, namely Hazel Infra Ltd (HIL), to acquire RNEL. HIL has released Rs 231.42 crore towards balance upfront payment today, i.e., October 27, 2023. This completes the upfront payment obligation as laid down in the Resolution Plan approved by the NCLT," the company stated.

We will promptly disseminate any further updates in the matter, as and when the same occurs, Swan further mentioned.

Swan Energy, along with Hazel Mercantile, emerged as the successful resolution applicant for Reliance Naval's shipyard in Gujarat. Their resolution plan of Rs 2,133 crore was approved by the NCLT, in December 2022.

The lenders were supposed to receive Rs 293 crore towards the upfront payment by March-end this year. But this payment was delayed as the consortium paid only Rs 50 crore until today.

Today, Swan Energy confirmed that the full upfront payment was done. As of September 2023, promoters held 64.09 per cent stake in the company.

On BSE, around 11.20 lakh shares changed hands today. The figure was way more than the two-week average volume of 1.38 lakh shares. Turnover on the counter stood at Rs 41.33 crore, commanding a market capitalisation (m-cap) of Rs 9,844.10 crore.

At the time of writing this story, there were 8,77,509 buy orders against sell orders of 20,849 shares.

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 75.93. 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 2024.29 against a price-to-book (P/B) value of 6.78. The scrip has a one-year beta of 0.8, indicating low volatility.

Also read: Hot stocks on October 27, 2023: Vedanta, Adani Power, Vodafone Idea, RVNL, Swan Energy and more            

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