Swan Defence Stake Sale via OFS Next Week

Mumbai, Mar 12 (PTI) Hazel Infra, the promoter entity of shipbuilder Swan Defence and Heavy Industries, is looking to part sell their holding in the company through the offer for sale (OFS) route next week, people aware of the development said on Thursday.

The share sale, which comes amid choppy market conditions and challenges in the shipping or maritime industry due to the Middle East conflict, will help the promoters meet the minimum public shareholding norms, they told PTI.

Investor road shows for the sale, which will see the promoter group divest about 5.01 per cent stake, have already begun, they said.

Once the road shows end this week, the floor price for the issue will be decided, they said.

JM Financial has been appointed as the merchant banker for the proposed share sale, the sources added.

In an exchange filing on Monday, Swan Defence and Heavy Industries said its promoter Hazel Infra has proposed to sell approximately 5.01 per cent of the company's equity shares through the offer-for-sale route via the stock exchange mechanism, in line with circulars issued by the Securities and Exchange Board of India (SEBI).


Emails sent to Swan Defence and Heavy Industries and JM Financial remained unanswered till the time of publishing the story.

Swan Defence operates the Pipavav shipyard facility, which was earlier owned by the bankrupt Reliance Naval and Engineering. The company currently has a market capitalisation of around Rs 12,000 crore.

Hazel Infra is a special purpose vehicle floated by Swan Energy for taking over Reliance Naval and Engineering from insolvency resolution.

Swan Energy holds 74 per cent in Hazel Infra and the remaining 26 per cent is held by Hazel Mercantile, in which Swan is a strategic investor.

Swan Group has interests in the textiles, real estate, oil and gas and petrochemical sectors.

The Swan Defence scrip, which had witnessed some selling after the OFS announcement, gained 4.99 per cent to close the session at Rs 2,285.05 a piece on the BSE on Thursday.