Swan Energy completes acquisition of Reliance Naval, stock jumps 12%

Swan Energy Ltd, through its SPV i.e., Hazel Infra Limited, said on Friday it has made a payment of Rs 231.4 crore towards the upfront payment obligations of Reliance Naval and Engineering Limited, which completes the takeover process of the company from NCLT. The company's scrip on BSE jumped 12% to Rs 369.

Swan Energy Limited had requested for extension of time till November 15, 2023 to infuse the balance upfront payment of Rs 231.42 crore and the next NCLT hearing for the matter is scheduled on November 22, 2023. However, the company has made this payment much before the due date and thereby completes the takeover process of Reliance Naval from NCLT, it said.

With this acquisition, Swan Energy Limited has firmed up its plan to emerge as the biggest private player in the commercial and naval defence vessel manufacturing and ship repairing segments. Apart from targeting major contracts from the naval defence sector, the company is also focusing on driving business for commercial vessel manufacturing and for the oil and gas sector.   

The largest shipyard in India with a new management in place is set to play a major role in building self-reliance in the shipbuilding sector in line with the government's Atmanirbhar Bharat Push. The name change process of Reliance Naval is to be initiated immediately, said the company.

"This is a big day for the company and marks a key milestone for our future growth trajectory. In this phase of growth, the oil and gas, defence and heavy manufacturing businesses are the major focus areas for us. We are enhancing the shipyard manufacturing capacity to play our part in making India among the top five countries of the world in heavy fabrication - be it in naval, defence or oil and gas, and bridge the current demand-supply gap," the company said.