Swan Energy witnessed a marginal decline in its shares on February 21, a day after the company announced a Rs 4,000-crore qualified institutional placement (QIP) with a floor price of Rs 703.29 per share.
In a filing to the stock exchange, Swan Energy stated that the funds raised from the QIP will be utilized for debt reduction and modernizing facilities.
QIP, a method employed by listed companies to raise capital by issuing equities or other equity convertible securities to qualified institutional buyers, is aimed at enabling companies to raise funds without diluting their management stake and without the need for extensive paperwork similar to their initial public offer (IPO).
As of 11:47 am, the shares were trading 2.04% lower at ₹735.95, reflecting investor response to the QIP announcement and its potential impact on the company’s capital structure.
