Swan Energy's shipyard (Reliance Naval and Engineering) resumes operations; stock jumps 5%

Swan Energy Ltd (SEL) on Monday announced the resumption of operations at its shipyard, formerly known as Reliance Naval and Engineering Ltd or RNEL. "Swan's shipyard has commenced refit of ships at its establishment. Indian Coast Guard's fast patrol vessel, Raj Ratan, is the first repair project, which began on September 4, 2024. The project has been completed ahead of schedule, on November 30, 2024. The refit was executed in association with Sadhav Offshore Engineering Pvt Ltd," the company stated in a release.

SEL said the dry docking and refit of this ship marks a significant milestone in the revival of the shipyard. It took over the management control of RNEL earlier this year through National Company Law Tribunal's (NCLT's) resolution plan. Reliance Naval was once controlled by Anil Ambani.

"As part of the comprehensive refit of the ICG vessel, Swan's shipyard provided end to end services, including berthing and dry docking, along with critical yard services essential for the vessel's overhaul. Swan’s Shipyard is also gearing up to commence its shipbuilding operations at the facility," the company also said.

Vivek Merchant, Director of Swan's Shipyard, said, "The resumption of operations at our shipyard marks the successful culmination of our dedicated efforts to rejuvenate this strategic facility. Delivering our first Indian Coast Guard vessel underscores our commitment to enhancing India's ship repair and shipbuilding capabilities. Our vision is to establish our shipyard as a leading maritime hub for the manufacturing of defence and commercial ships, and for the heavy engineering sector, on a global scale."

On the stock-specific front, SEL shares jumped 5.12 per cent to hit a day high of Rs 642.20. They were last seen trading 4.76 per cent higher at Rs 640. At this price, the scrip has climbed 25.53 per cent in the 2024 so far.

Around 1.44 lakh shares changed hands on BSE at the time of writing this story. The figure was lower than the two-week average volume of 2.85 lakh shares. Turnover on the counter came at Rs 9.10 crore, commanding a market capitalisation (m-cap) of Rs 20,034.60 crore.

As of September 2024, promoters held a 53.96 per cent stake in the company.