Swan Energy board approves ₹4,000-crore fundraise, its second in three months

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₹4,000 crore by issuing equity shares or any other eligible securities for public and/or private offerings, according to a regulatory filing on Thursday evening. The company said it would seek approval for the fundraise from its shareholders at an extraordinary general (EGM) meeting, the details of which would be announced later. The fundraise is also subject to regulatory approval.

“The funds will mainly be used for the company’s upcoming growth and expansion plans," said a person privy to the development, who did not wish to be named. The person added that a fundraising committee, comprising the board of directors, would review the company’s plans to raise funds. The Mumbai-based firm has interests in textiles, real estate, and oil & gas.

This is the second time in three months that the board has approved a fundraise. In September it announced plans to raise ₹1,435 crore through a preferential issue of 29 million shares at ₹495 each. The company has also been looking to repay its debt.

Earlier this week, it informed the exchanges that it planned to repay ₹300 crore of debt for its floating storage and regasification unit (FSRU) project at Jafarabad, Gujarat, as Mint reported. This would be facilitated by its subsidiary Triumph Offshore Pvt Ltd and showed the company's dedication to the project's sustainability and financial health, Swan Energy said. The company holds a 32.12% stake in the Jafrabad unit.

Swan Energy has also set up a debt service retention account with ₹94 crore to ensure seamless debt prepayments. On Wednesday it paid ₹40 crore of debt from its textile unit to a consortium of banks led by Union Bank of India. The company recently sought the National Company Law Tribunal’s approval to extend the