Swan Energy shares update on Reliance Naval acquisition & relisting; stock down 5%

Swan Energy Ltd, in a BSE filing on Thursday, said the issuance exercise of one (1) equity share for every 275 equity shares held by the existing shareholders of Reliance Naval and Engineering Ltd (RNEL) has been completed. "In accordance with the NCLT order, Ahmedabad bench dated December 23, 2022, issuance of 1 equity share for every 275 equity shares held by the existing shareholders of RNEL is completed. RNEL is in the process of obtaining the relisting approval from the stock exchanges and has made the required payments as demanded by the exchanges," it stated.

The final listing approval is under consideration of the exchanges, Swan Energy added. For the unversed, Swan Energy is a strategic investor of successful resolution applicant, i.e., Hazel Mercantile Ltd (HML) -- through a special purpose vehicle -- namely Hazel Infra Ltd (HIL), to acquire Reliance Naval.

Shares of Swan Energy fell 4.86 per cent to settle at Rs 538.35. The stock has slipped 18.29 per cent in the past one month.

Around 58,000 shares changed hands today on BSE. The figure was higher than the two-week average volume of 54,000 shares. Turnover on the counter came at Rs 3.16 crore, commanding a market capitalisation (m-cap) of Rs 16,874.95 crore.

Bourses BSE and NSE have put the securities of Swan Energy under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

The counter traded lower than the 5-day, 10-, 20-, 30-, 50-day and 100-day simple moving averages (SMAs) but higher than the 150-day and 200-day SMAs. The stock's 14-day relative strength index (RSI) came at 27.35. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 3,364.69 against a price-to-book (P/B) value of 11.10. Earnings per share (EPS) stood at 0.16 with a return on equity of 0.33.

Swan Energy had acquired Reliance Naval, which was once controlled by Anil Ambani, through National Company Law Tribunal's resolution plan. Reliance Naval shares were suspended from trading effective July 14, 2023, due to procedural reasons.