Swan Energy Soars as BlackRock Purchase Trains Upper Circuit Lock

Rising by 5% to Rs 727.20 a share on the NSE Tuesday’s early trading session, Swan Energy’s shares have been locked in the upper circuit for two consecutive days. By 10:04 AM IST, the Nifty50 index, on the other hand, barely rose 0.25%, landing at 24,342 points. Driven by notable acquisitions by worldwide asset management BlackRock, this increase followed a 10% rally over the past two trading days.

Monday BlackRock bought Swan Energy shares valued at Rs 304 crore via open market deals. Block deal data from the NSE shows BlackRock, along with its three associates, bought over 4.55 million shares, equating to a 1.45% ownership in the Mumbai-based company. Acquired at an average price of Rs 668.27 per, the shares come to Rs 304.50 crore.

Several companies, including Mauritius-based private equity fund 2i Capital PCC, EOS Multi-Strategy Fund AIFLNP VCIC, Dovetail India Fund, Epitome Trading and Investments, and Paulomi Ketan Doshi, sold their Swan Energy holdings at prices ranging from Rs 666.20 to Rs 692.60 per share concurrently.

Operating in manufacturing and marketing fabrics including cotton, polyester cotton, linen, and viscose as well as non-lycra items, Swan Energy also has major interests in commercial and residential real estate development. With its shares selling at a price-to—earnings ratio of 37.05 times, the company’s entire market value comes at Rs 22,494 crore, per NSE data.

Swan Energy’s stock price has surged recently, following an amazing year in which it achieved multi-bagger gains of over 160%, much above the benchmark Nifty50, which has climbed about 11% in the same period. Bloomberg data showed on July 8 that the stock jumped 5% after a significant block sale involving 1.22 million shares traded.

Apart from its main companies, Swan Energy runs in several areas including textiles, real estate, energy, and petrochemicals. Recently, the company got board permission to purchase for Rs 440 crore a 49% equity share in Triumph Offshore Private Limited (TOPL) from Indian Farmers Fertiliser Cooperative (IFFCO). Under the agreement TOPL is a 100% subsidiary of Swan Energy, acquiring 26.21 crore equity shares of Triumph Offshore at Rs 16.78 each. August 10, 2024 is when this deal is supposed to finish.

Technical analysts observe that on the daily chart Swan Energy’s stock lately broke out from a symmetric triangle pattern accompanied by a notable rise in trading volume. With experts projecting short-term targets of up to Rs 780 should the price close above Rs 660, this breakthrough points to a possible upward trend.

Swan Energy’s recent performance shows overall its strong market position and the effect of strategic acquisitions, therefore preparing the business for ongoing development and investor interest.