Swan Energy rises 3% after board okays 49% stake buy in TOPL for Rs 440 cr

The uptick in share came after board of Swan Energy approved acquisition of 49 per cent equity stake in Triumph Offshore Private Ltd from Indian Farmers Fertiliser Cooperative Ltd for Rs 440 cr

Swan Energy shares rise: Shares of Swan Energy rose as much 2.80 per cent to hit an intraday high of Rs 642.10 per share. 

The uptick in share price came after the board of the company approved  acquisition of 49 per cent equity stake in Triumph Offshore Private Ltd (TOPL) from Indian Farmers Fertiliser Cooperative Ltd (IFFCO) for Rs 440 crore. 

In an exchange filing, Swan Energy said, “The Board of Directors of Swan Energy Limited (SEL) at its meeting held on June 24, 2024, have inter alia, considered and approved the acquisition of 26,21,50,000 equity shares of Rs 10 each of TOPL (representing 49 per cent of total equity of TOPL) from Indian Farmers Fertiliser Cooperative Limited (IFFCO) at a total price of Rs 440 crore, as per duly executed Share Purchase Agreement (SPA).”

Under the terms of the deal, Swan Energy will acquire 26,21,50,000 equity shares at Rs 16.78 per share. 

At present, the company holds 51 per cent equity stake in TOPL. After the proposed acquisition, TOPL will become a 100 per cent subsidiary of the company.

The acquisition will be complete on or before August 10, 2024.

Swan Energy Limited operates across various sectors including textiles, real estate, energy, and petrochemicals. The company's business segments encompass Textile, Energy, Construction/Others, Distribution & Development, Warehousing, Manufacturing, and Power Generation. 

Swan Energy's diversified business verticals include Oil & Gas, Petrochemical Manufacturing & Trading, Textiles, and Realty

Notably, the company is advancing a new LNG port project aimed at environmental sustainability. This initiative involves constructing LNG port facilities utilising a Floating Storage and Regasification Unit (FSRU) for receiving, storing, regasifying LNG, and distributing it. 

In addition to its industrial endeavours, Swan Energy engages in dyeing and printing a variety of fabrics such as cotton, polyester-cotton blends, linen, viscose fabrics with options including Lycra. 

The company has also successfully completed two prominent property developments in Mumbai: a commercial IT park in Kurla and a residential complex in Sewri. Furthermore, Swan Energy contributes to the petrochemical sector through the production of various petrochemical products.

The market capitalisation of Swan Energy is Rs 20.050.27 crore, according to Bombay Stock Exchange (BSE).

At 9:49 AM, shares of Swan Energy were trading 2.50 per cent higher at Rs 639.65 per share. By comparison, BSE Sensex was trading 0.33 per cent higher at 77,599.46 levels.