Swan Energy Share Price Rises Over 5% To Nearly Two–Month High—Here's Why

Swan Energy Ltd.'s share price rose to the highest level in nearly two months after the company informed the exchanges that its subsidiaries' boards had agreed to a merger. Triumph Offshore Pvt. Ltd., a wholly–owned subsidiary, and Reliance Naval and Engineering Ltd., a step down subsidiary, at their board meetings on Nov 22, approved a scheme of arrangement and amalgamation between the companies, the creditors and shareholders, Swan Energy said in an exchange filing on Friday.

The scheme of merger is subject to approval from the National Company Law Tribunal, and stock exchanges.

Reliance Naval and Engineering is a listed company. Its shares trade on both the NSE and BSE. The Pipapav Port–based company builds vessels, and does repairs and refits of ships and rigs and heavy engineering, Swan Energy said.

Swan Energy acquired Reliance Naval and Engineering through special purpose vehicle Hazel Infra Ltd. under the Corporate Insolvency Resolution Process approved by the National Company Law Tribunal.

Triumph Offshore specialises in purchasing and operating vessels, and has its registered office in Ahmedabad, the exchange filing said. The company was incorporated to own, purchase, charter hire, sell, exchange, let, operate, trade in steam and other ships. Other ships include floating storage regasification units and floating storage units, boats, tugs, vessels, trawlers, drifters, other transports and conveyances.

Swan Energy share price rose 5.78% to Rs 620.70 apiece, the highest level since Sept 26. It pared gains to trade 3.87% higher at Rs 609.65 apiece as of 10:35 a.m., as compared to 1.75% advance in the NSE Nifty 50 index.

The stock gained 41.20% in 12 months, and 19.24% on a year-to-date basis. Total traded volume so far in the day stood at 7.0 times its 30-day average. The relative strength index was at 66.99.