Published 16:33 IST, February 29th 2024

Swan Energy raises Rs 3,000 crore through QIP

The proceeds from the placement will primarily be used to modernise the recently acquired Reliance Naval and Engineering's shipyard at Pipavav.

Reported by: Business Desk
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Representative | Image: Unsplash
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Swan Energy’s new funding: Swan Energy announced on Thursday that it successfully raised Rs 3,000 crore through a qualified institutional placement of shares, with each share priced at Rs 670. The placement garnered interest from qualified institutional investors, including Quant Mutual Fund, SBI Life, LIC, LIC Mutual Fund, Tata Mutual Fund, Infini Mutual Funds, SBI General Insurance, BNP Paribas Mutual Fund, Nomura, Goldman Sachs, Future Generali, Anand Rathi, as well as other domestic and foreign institutions and family offices, the company disclosed.

The proceeds from the placement will primarily be used to modernise the recently acquired Reliance Naval and Engineering's shipyard at Pipavav. Additionally, a portion of the funds will be allocated for project expansion and debt reduction.

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Paresh Merchant, an executive director of Swan, underlined that assuming management control of Reliance Naval aligns with their vision to become a leading private player in the manufacture of defence, commercial, and oil and gas vessels. 

Swan plans to solidify its position as a key player in ship repairing and establish itself as a hub for global manufacturing in the Asia Pacific region. To accomplish these objectives, the company is undertaking comprehensive restructuring initiatives aimed at resuming yard operations expeditiously.

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Swan Energy is a diversified company with interests spanning real estate, textiles, oil & gas, defence, commercial shipbuilding, and ship repairs. The issue was priced at Rs 670 per share, inclusive of a premium of Rs 669, as stated in the company's announcement.

(With PTI inputs)

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16:27 IST, February 29th 2024