Swan Energy's board approves raising Rs 1,435 crore; stock zooms 15%

Shares of Swan Energy, a prominent player in India's industrial sector, surged as much as 15 per cent in the opening deals on Monday, September 25, after its board approved raising Rs 1,435 crore on a preferential basis. The company will issue up to 2.9 crore shares for Rs 495 apiece. With today's rally, the stock has gained for the third straight session.

However, the stock pared gains later in the trade.

"Subject to the approval of the members in the Extra Ordinary General Meeting and appropriate authorities issuance of up to 2,90,00,000 (Two Crore Ninety Lakhs) equity shares of the face value of Rs. 1/- each at a price of Rs. 495/- each [Rupees Four Hundred and Ninety Five Only] (including premium of Rs. 494/- each [Rupees Four Hundred and Ninety Four Only]) or at a price being not lower than the minimum price," the regulatory filing read.

At around 9:50 am, shares of Swan Energy were up 9.52 per cent on the BSE at Rs 326.8 apiece. The market capitalisation of the company stood at Rs 8,624.81 crore. At close, shares of Swan Energy were down 2.09 per cent at Rs 292.15 apiece. 

Analysts' views

The stock has breached the target of Rs 310 apiece with a stop loss of Rs 290 apiece given by Kushal Gupta, Senior Research Analyst, Zee Business.

"The said counter has already seen an upside from 220 to 340 in a very short span of 2 months or so. On a weekly scale, there is bearish bat (harmonic pattern) structure formation near 340–360 levels. On the 25-09-2023 trading session, we saw exact selling from those levels only. As we advance, book profit in the mentioned zone of 340–360. Fresh longs are not recommended at the current juncture," said Jigar S Patel - Senior Manager - Technical Research Analyst, Anand Rathi Shares and Stock Brokers.

Swan Energy Q1 results 

The profit after tax (PAT) of the company stood at Rs 1.05 crore for the quarter ended June 30, 2023 (Q1FY24) against Rs 39.2 lakh recorded a year ago, up 167.12 per cent. The revenue from operations stood at Rs 113.58 crore against Rs 252.38 crore logged in the corresponding quarter of the previous fiscal.

The company registered a net sales of Rs 113.58 crore against Rs 252.38 crore, down 55 per cent YoY. 

Swan energy share price: Past performance

In 2023 so far, the stock has gained over 1 per cent against the headline index's rise of nearly 8 per cent. 

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