Swan Energy Ltd.’s shares rise on completing QIP, raising ₹3,000 crore

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Swan Energy Limited’s shares were up by 3.70 per cent after the company completed a Qualified Institutions Placement (QIP), raising ₹3,000 crore. Priced at ₹670 per share, inclusive of a premium of ₹669 per share, the QIP witnessed participation from various institutional investors such as Quant Mutual Fund, SBI Life, LIC, Tata Mutual Fund, and foreign institutions such as Nomura, Goldman Sachs, and BNP Paribas Mutual Fund, among others.

Also read: Swan Energy raises over ₹3,300 crore via QIP; LIC, SBI Life among investors

The company reported, the proceeds from the QIP will be utilized for the modernization of the recently acquired Reliance Naval and Engineering Ltd (RNEL) shipyard at Pipavav. Additionally, funds will be allocated towards project expansion and debt reduction.

Paresh Merchant, Executive Director of Swan Energy Limited, said, “Our goal is to establish ourselves as the foremost player in ship repairing and a hub for global manufacturing in the Asia Pacific region. To achieve these objectives, we are undertaking a comprehensive restructuring initiative to ensure a seamless transition towards resuming yard operations in the near future. We remain committed to fostering a strong people culture and creating value for our stakeholders, investors, and employees.” 

The company reported, it engaged a global consulting firm and recruited industry talent to expedite the turnaround of the shipyard, aiming to commence commercial operations by June, 2024. Efforts are underway to upskill and absorb employees through an internal selection process while ensuring compliance with statutory requirements.

Shares were up by 3.70 per cent to ₹771.55 at 2.14 pm on the BSE.