Swan Energy share price dips after announcing ₹4,000 crore QIP

21 Feb 2024 , 10:35 AM

On February 21, a day after Swan Energy announced a ₹4,000-Crore qualified institutional placement (QIP) with a floor price of ₹703.29 per share, the company’s shares saw a little decline.

Swan Energy stated in a stock exchange filing that it intends to use the QIP cash for facility modernization and debt reduction.

Qualified Institutional Buyers (QIBs) are accredited institutional buyers who purchase stocks or other equity convertible securities from listed firms in order to raise money. It’s a typical private placement strategy in which the business avoids diluting its management stake and avoids having to redo the laborious paperwork from its IPO.

Over the past year, Swan Energy shares have increased by 187%, yielding multi-bagger returns. By contrast, throughout this same period, the benchmark Nifty 50 has increased by 24%. This year, the stock has increased by over half already.

Swan Energy recorded a net profit of ₹220 Crore for the quarter that concluded in December 2023, as opposed to a loss of ₹16 Crore for the same period the previous year. In Q3FY24, its revenues surged by over fifteen times year over year (YoY) to ₹1,592 Crore. 

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

Reliance Naval and Engineering was purchased by the firm in December 2023 via Hazel Mercantile, a special purpose vehicle (SPV).

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