Incorporated in 1997, Reliance Naval and Engineering Ltd is engaged in the construction of vessels, repairs and refits of ships and rigs and heavy engineering. It was the first private sector company in India to obtain a license and contract to build warships.
Reliance Naval & Engineering Ltd shares were suspended from trading on the National Stock Exchange (NSE) effective July 14, 2023, due to a capital reduction pursuant to an NCLT order dated December 23, 2022.
Earlier, Swan Energy, a Mumbai-based conglomerate, acquired Reliance Naval and Engineering through its special purpose vehicle, Hazel Infra, for Rs. 231 crores. This acquisition solidified Swan Energy’s position in India’s shipbuilding sector, aiming to become the largest private player in naval defence, commercial vessel manufacturing, and ship repairing segments.
Swan Energy made a prepayment of Rs. 300 crores towards its Floating Storage and Regasification Unit project as part of its strategic financial planning. This prepayment aligns with the company’s efforts to manage its debt and strengthen its financial position.
Additionally, the Swan Energy board approved raising Rs. 4,000 crores as the company’s proactive approach to secure funds for its projects and future growth initiatives.
Moreover, the NCLT approved a Rs. 2,100 crores bid for RNEL under the corporate insolvency resolution process made by Hazel Infra, which is an SPV of Swan Energy (74 per cent) and Hazel Mercantile (26 per cent).
According to the exchange filing released by Swan Energy today, the issuance of one Equity Share for every 275 equity shares held by the current shareholders of RNEL was been finalized by the Hon’ble NCLT, Ahmedabad Bench, dated December 23, 2022.
Furthermore, the company mentioned that Reliance Naval and Engineering is in the process of obtaining the relisting approval from the Stock Exchanges and has made the required payments as demanded by the Exchanges. The final listing approval is under consideration by the Exchanges.
Looking at the financial statements of Swan Energy, the revenue zoomed by 30 percent from Rs. 1,223 crores during the September quarter to Rs. 1,592 crores in the December quarter. On the other hand, the net profits surged by 33 percent from Rs. 166 crores to Rs. 220 crores during the same period.
Swan Energy Limited is a diversified company engaged in textile, real estate, and energy businesses. Specifically, the company offers cotton and polyester textile products, develops commercial and residential real estate properties, and is involved in the natural gas sector through projects like LNG port facilities.
Written By Vaibhav Patil
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