Swan Energy shares fall for seventh session, stock crashes below its QIP price of Rs 670; here is why

Swan Energy share price: Shares of Swan Energy declined as much as 17 per cent in trade on March 12, slipping for the seventh straight session. The stock dipped after a block deal on NSE comprising 1.79 lakh shares at Rs 590.95 per share. The deal size, as per reports, was Rs 10.59 crore.

At around 1:52 p.m., shares of the company traded 10.79 per cent, or Rs 72.1, lower at Rs 596.25 apiece, which is 11 per cent lower than its qualified institution placement (QIP) price of Rs 670 apiece. 

On February 29, Swan Energy, through a release, said that it had raised Rs 3,000 crore through a QIP, which was priced at Rs 670 per share, inclusive of a premium of Rs 669 per share. 

As per the release, the QIP garnered significant 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, Diamond Asia, Bank of India Mutual Fund, ITI Mutual Fund, Goldman Sachs, Future Generali, Anand Rathi, and other domestic and foreign institutions and family offices. 

The raised funds were to be utilised for the modernisation of the recently acquired Reliance Naval and Engineering Ltd (RNEL) shipyard at Pipavav. Additionally, a portion of the funds will be allocated for project expansion and debt reduction. 

Swan Energy Limited said it had intensified its shipyard restoration efforts, focusing on activities such as dredging, reinstatement of licences and certifications, implementation of industry-standard safety measures, and upgrading basic utilities.

The company has engaged a leading global consulting firm and recruited top industry talent to expedite the turnaround of the facility, aiming to commence commercial operations by June 2024, it added.

Swan Energy Limited (SEL) is one of the leading global conglomerates with diversified interests in real estate, textiles, oil and gas, commercial shipbuilding and ship repair, and heavy fabrication.

Swan Energy share price: Past performance 

In a year, shares of Swan Energy have given a multi-bagger return of over 113 per cent, outperforming the Nifty50's rise of over 30 per cent. 

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