On Wednesday, the shares of this leading Oil & Gas company soared 2% to ₹763.30 per share a day after the company floated a ₹4,000-crore qualified institutional placement (QIP) to raise funds.
At 11:30 a.m., Swan Energy Ltd shares were trading at ₹734.90 per share, down 2.01% on the National Stock Exchange from the previous close price. The company has a market capitalization of ₹19,375 crore.
The company board approved raising funds through qualified institutional placement (QIP), for which the floor price is set at ₹703.29 per share. The company looks to raise ₹4,000 crore through a QIP.
The company has set a QIP indicative price at ₹670 per share, with a discount of 4.7% to the Securities and Exchange Board of India (SEBI) floor price and 10.8% to Tuesday’s closing price. The base deal size of the QIP is ₹3,000 crore, with an option to upsize by ₹1,000 crore, as per the CNBC TV 18 report.
The company planned to use the funds from the QIP for debt reduction and modernizing facilities.
Swan Energy’s revenue has increased by 1476% yearly, from ₹101 crore in Q3FY23 to ₹1,592 crore in Q3FY24. During the same time, the company’s net profit has increased from a loss of ₹16 crore to a profit of ₹220 crore.
According to the latest shareholding pattern, the company promoters hold 64.09 percent of the company, while Foreign institutional investors hold 10.47 percent and domestic institutional investors own a 5.82 percent stake.
Swan Energy Limited is engaged in the business of textile, real estate, energy, and petrochemical sectors. The company also manufactures and markets cotton and polyester sarees and shirtings in India.
Swan Energy shares have gained multibagger returns of 163% in the last six months and 180% in a year.
In the fiscal year 2023, the majority of the company’s revenue, 72%, was derived from the Construction segment, with the energy segment contributing 16% and the textile segment contributing 4%.
Written by Omkar Chitnis
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