Swan Energy's stock gains 4% as a result of the potential for QIP to raise Rs 4,000 crore

Swan Energy's stock gains 4% as a result of the potential for QIP to raise Rs 4,000 crore

Swan Energy intends to modernise the plant and reduce debt using the money from the QIP, according to a report.

Swan Energy's stock increased 3.78 percent after the closing on February 20 on news that the business intends to fund Rs 4,000 crore via qualified institutional payments (QIP).

According to individuals who spoke with ET, Swan Energy plans to modernise the plant and pay off debt using the money from the QIP. Companies may use QIP to raise money on the open market from institutional investors.

According to ET's sources, Swan Energy is in discussions with a number of participants, and mutual funds, insurance providers, and a few overseas institutional investors have shown a strong desire to take part in the QIP. According to ET, the major participant is anticipated to be global investment firm Goldman Sachs.

In December 2023, Swan Energy bought Reliance Naval & Engineering via Hazel Mercantile, a special purpose business.

The share price of Swan Energy has risen by 187% in the last year. The previous six months have seen a 170 percent increase in shares.

In contrast to a loss of Rs 16 crore during the same period last year, Swan Energy recorded a net profit of Rs 220 crore for the October through December quarter. In Q3FY24, their revenue increased by over 15 times year over year (YoY) to Rs 1,592 crore.

On Tuesday, Swan Energy's shares ended the day 3.78 percent higher at Rs 756 on the National Stock Exchange.

Swan Energy works in the petrochemical, real estate, energy, and textile industries. Textiles, energy, building, distribution and development, storage, manufacturing, and power generating are some of its sectors.