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News Topical, Digital Desk : Shipbuilding company Swan Defence and Heavy Industries may soon raise a large amount from the market through QIP. Moneycontrol has given this information quoting sources. According to the report, the company may soon enter the market to raise Rs 750 crore through qualified institutional placement. According to the information given, promoter Hazel Infra may reduce its stake in the company from the current 94.91 percent to 5 percent. Hazel Infra is a special purpose vehicle that was created by Swan Energy to buy Reliance Naval and Engineering through bankruptcy process. According to SEBI rules, Swan Defence has to increase its minimum public shareholding to 25 percent in 3 years. By selling the current 5 percent stake, the company will come closer to fulfilling this rule.
The stock has seen a sharp jump in Monday's trading and the stock closed with a gain of 5 per cent today.
Sources said that to meet the rules, the company has to offer a 20 per cent stake. If the company offers a 5 per cent stake, the amount to be raised at an estimated valuation of Rs 15,000 crore will be Rs 750 crore. Swan Energy's talks with investment bank JM Financial to raise funds have reached the next stage. However, neither party has made any statement regarding the discussion. On April 23, the board of Swan Defense and Heavy Industries constituted a committee, which was to further examine the route required to meet the minimum public share holding rules. These routes included QIP, rights issue, public offer or other options. It is worth noting that Swan Energy took control of Reliance Naval and Engineering last year. For this, the bid was made through Hazel Infra, in which Swan Energy has a 74% stake and Hazel Mercantile has a 26% stake. Swan Energy is also a strategic investor in Hazel Mercantile. With the acquisition of Reliance Naval, Swan Group has entered the field of shipbuilding, ship repair and heavy fabrication.
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