Swan Energy shares may gain on launch of Rs 4,000-crore QIP

Shares of Swan Energy may trade in green on February 21, a day after the company floated a Rs 4,000-crore qualified institutional placement (QIP) with a floor price of Rs 703.29 per share.

In a stock exchange filing, Swan Energy said that it aims to use the funds from the QIP for debt reduction and modernising facilities.

QIP is a method by which listed companies raise capital by issuing equities, or other equity convertible securities to qualified institutional buyers. It is a common method of private placement where the company does not dilute its management stake and also does not need to repeat elaborate paperwork from its initial public offer (IPO).

Swan Energy‘s shares have gained 187 percent in the last one year, delivering multi-bagger returns. In comparison, the benchmark Nifty 50 has risen 24 percent during this period. So far this year, the stock has rallied nearly 50 percent.

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For the quarter ended December 2023, Swan Energy reported a net profit of Rs 220 crore, compared to a loss of Rs 16 crore in the same quarter a year ago. Its revenues increased almost 15 times on-year (YoY) to Rs 1,592 crore in Q3FY24.

Swan Energy is engaged in the textile, real estate, energy, and petrochemical sectors. Its segments include textile, energy, construction, distribution and development, warehousing, manufacturing, and power generation.

The company in December 2023, had acquired Reliance Naval and Engineering through Hazel Mercantile, a special purpose vehicle (SPV).

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