Swan Energy stock locked at 5% upper circuit after block deal

Swan Energy Limited operates across various sectors including textiles, real estate, energy, and petrochemicals.

Shares of Swan Energy surged 5 percent after 1.22 million shares changed hands in a significant block deal on July 8, Bloomberg data showed.

At 10:41 am, the stock was locked at the upper circuit at Rs 692.60 on the National Stock Exchange (NSE).

Swan Energy operates across sectors including textiles, real estate, energy, and petrochemicals. The company's business segments encompass Textile, Energy, Construction/Others, Distribution & Development, Warehousing, Manufacturing, and Power Generation.

Its diversified business verticals include Oil & Gas, Petrochemical Manufacturing & Trading, Textiles, and Realty. Recently, Swan Energy board had approved the acquisition of 49 percent equity stake in Triumph Offshore Private Ltd (TOPL) from Indian Farmers Fertiliser Cooperative (IFFCO) for Rs 440 crore.

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Under the terms of the deal, Swan Energy will acquire 26.21 crore equity shares of Triumph Offshore at Rs 16.78 per share, after which TOPL will become a 100 percent subsidiary of the company. The acquisition is to be completed by August 10, 2024.

Swan Energy stock has zoomed over 35 percent so far in 2024, massively outperforming benchmark Nifty 50 which has risen around 11 percent during this period. In the last one year, the stock has delivered multi-bagger returns of over 160 percent, more than doubling investors' wealth.

Technical analysts point out that the stock has recently broken out of the symmetrical triangle on the daily chart with a significant increase in trading volume, indicating a potential breakout.

If the price manages to close above Rs 660, the stock may has the potential to reach short-term targets of up to Rs 780, according to analysts.

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