Swan Energy, Balu Forge Industries shares jump up to 8%; here's why

Swan Energy Ltd and Balu Forge Industries Ltd shares jumped on Tuesday following Swan Energy's announcement of a Special Purpose Vehicle (SPV) to tap into high-growth segments including defence, aerospace, railways, and nuclear industries. The news boosted investor sentiment, with Swan Energy rising 7.73 per cent to a day's high of Rs 459.80, while Balu Forge advanced 4.93 per cent to Rs 672. Both the counters logged heavy trading volumes today along with the price action.

The two companies have jointly established Swan Balu Heavy Industries Pvt Ltd (SBHIPL) as a special purpose vehicle (SPV) to develop and deliver advanced products and solutions for global strategic sectors.

Swan Energy disclosed that it has subscribed to 60,000 equity shares in SBHIPL and now holds a 60 per cent stake, making the new entity a subsidiary. The company also clarified that all transactions with the SPV will be conducted on an arm’s length basis.

The collaboration reflects a strategic shift for both firms, aligning with the government's emphasis on defence and infrastructure indigenisation.

In a separate development, Swan Energy reported a record profit after tax (PAT) of Rs 874 crore for FY25, marking a 49 per cent year-on-year (YoY) increase over the previous year. The company's total income rose 35 per cent to Rs 6,884 crore during the same period. Reflecting its expanding business footprint, the Board of Directors proposed renaming the company to Swan Corp Ltd. The board also recommended a nominal dividend of 1 paisa per share for the fiscal year.

Commenting on the performance, Managing Director Nikhil Merchant said, "We have achieved our highest-ever revenue and profitability, marking a significant milestone. Our diversified business model and focus on debt reduction have placed us on a strong path for sustained growth."

As of March 2025, promoters held a 53.96 per cent stake in the company.