Swan Defence Engages Merchant Bankers for Potential Issuances, No Final Decision Yet

Swan Defence and Heavy Industries Ltd. has confirmed that discussions with merchant bankers regarding potential issuances are ongoing, but no final decision has been made. The company is evaluating various fundraising options, including Qualified Institutional Placement (QIP) and rights issues, to comply with SEBI’s minimum public shareholding norms.

 

Key Highlights

 

Fundraising Discussions Underway:

 

Swan Defence is in talks with investment banks, including JM Financial, to explore capital-raising strategies.

 

The company aims to increase public shareholding from 5% to 25% within the next three years.

 

SEBI Compliance & Market Strategy:

 

Under SEBI norms, Swan Defence must dilute promoter holdings to meet minimum public shareholding requirements.

 

The company is considering multiple issuance options, including further public offerings and private placements.

 

Stock Market Reaction:

 

Swan Defence’s stock remains stable, with analysts projecting long-term growth potential.

 

Investors are closely monitoring the company’s next steps in capital restructuring.

 

Future Outlook:

 

The board has formed a committee to evaluate issuance strategies, ensuring financial stability and regulatory compliance.

 

The company’s shipbuilding expansion aligns with India’s Maritime Vision 2030, reinforcing its defense and commercial shipbuilding capabilities.

 

Swan Defence’s ongoing discussions mark a significant step in its growth strategy, ensuring financial stability and regulatory compliance.

 

Source: Economic Times, Moneycontrol, and Swan Energy Updates.