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The Hindu
03-07-2025
- Business
- The Hindu
‘Unrealistic‘ price bands hamper relisting of NCLT-led insolvent firms
Several companies that had successfully completed the National Company Law Tribunal (NCLT)-led corporate insolvency resolution process (CIRP) and opted for relisting in the stock exchanges are finding it difficult to secure fair price discovery due to alleged 'unrealistic' price bands set by the stock exchanges and hence seeing value distortion, according to impacted companies and analysts. 'Several companies which emerged from NCLT-led insolvency proceedings are facing challenges in securing the right valuations during relisting due to the imposition of unrealistic price bands,' said Martin Golla, a Mumbai-based lawyer, who specialises in insolvency and bankruptcy law. 'There are instances where companies have been stuck because of inappropriate valuation, and that hinders their ability to attract capital for the next phase of growth,' he said. 'So, it's time authorities take cognisance of the matter and implement corrective measures to restore the credibility of the entire process,' he added. The latest to bear the brunt was Swan Defence and Heavy Industries (SDHI), which owns India's largest private shipyard. The company, which was relisted on the bourses on January 20, 2025, after completion of the restructuring process, has been facing value erosion. Despite a SEBI circular issued in 2012 prohibiting price bands on day 1 of relisting, the National Stock Exchange of India (NSE) and BSE Ltd. are said to be following a price band system. This has resulted in an unrealistic price discovery at ₹35.99 per share compared with a book value of over ₹1,500, investors said. A section of investors in SDHI had approached SEBI to address the issue and are believed to have suggested a new price discovery mechanism providing the fair value of shares. Long-standing investors in the company, who had held shares through the insolvency process with the hope of a price recovery after the relisting, are believed to be in a fix. Despite a sharp uptick in prices, the scrip remains highly illiquid due to narrow trading windows and restrictive order execution limits, effectively trapping investors and denying them the opportunity to sell or pledge their positions, analysts said. 'I held SDHI (previously RNEL) shares for five years, hoping for a turnaround. Now that things are finally looking up, I find myself stuck—I still can't sell,' said a retail investor, asking not to be named. Apart from SDHI, several other companies, including a gaming company named String Metaverse , which got relisted on October 31, 2024, have been allegedly at the receiving end of 'unrealistic price discovery triggered by rules imposed by exchanges.' Bhushan Steel Ltd., Monnet Ispat & Energy Ltd, Jyoti Structure and ABG Shipyard Ltd. have faced similar issues related to price recovery mechanism, resulting a prolonged struggle for investors, analysts said. To arrive at fair price discovery in holding companies, stock exchanges have implemented special call sessions. However, it had thrown unexpected outcome sometimes, they added.
United News of India
31-05-2025
- Business
- United News of India
Swan Energy logs record Rs 6,884 crore income in FY25
Mumbai, May 30 (UNI) Swan Energy Limited has reported its highest-ever income and profitability for the financial year ended March 31, 2025, with consolidated income rising by 35 per cent to ₹6,884 crore and profit after tax (PAT) surging by 49 per cent to ₹874 crore. The company had posted an income of ₹5,100 crore and PAT of ₹586 crore in FY24. The diversified Indian conglomerate, with interests in textiles, real estate, oil and gas, shipbuilding and heavy fabrication, also saw its EBITDA rise sharply by 90 per cent to ₹1,804 crore in FY25, as against ₹951 crore in the previous fiscal. The EBITDA margin improved to 26.2 per cent from 18.6 per cent a year earlier. According to the company's regulatory filing, the improved financial performance was driven by significant debt reduction following a ₹3,320 crore Qualified Institutions Placement (QIP), successful commissioning of shipyard operations under Swan Defence and Heavy Industries (SDHI), and progress across its real estate and energy verticals. SDHI, formerly Reliance Naval and Engineering Ltd, resumed operations and delivered three refits ahead of schedule for the Indian Coast Guard. The company has also signed strategic MoUs with major shipbuilding players. In the real estate segment, the company's flagship residential project Cardinal One in Yeshwanthpur, Bengaluru received its Occupation Certificate, with over 90 per cent of the units sold. In the LNG business, subsidiary Triumph Offshore Pvt Ltd sold its Floating Storage and Regasification Unit (FSRU) 'Vasant-1' for around $399 million. The onshore LNG terminal at Jafrabad, Gujarat is nearing completion, with long-term regasification agreements secured with public sector undertakings including GSPC, BPCL, IOCL, and ONGC. Commenting on the results, Managing Director Mr Nikhil Merchant said the financial year marked a significant milestone in Swan Energy's journey. "Our highest ever revenue and profitability reflect the strength of our diversified business model and prudent financial management," he said. He added that the groundwork laid across verticals, including new energy and shipbuilding, has positioned the company well to capitalise on emerging opportunities. UNI BDN SSP
Time of India
30-04-2025
- Business
- Time of India
SDHI signs strategic MoU with Wheel & Time Shipping Transport Logistics
Swan Defence and Heavy Industries Ltd ( SDHI ) has signed a strategic MoU with Wheel & Time Shipping Transport Logistics to launch a Fabrication, Assembly, Storage, and Transportation (F.A.S.T.) logistics facility at its Pipavav shipyard in Gujarat. #Pahalgam Terrorist Attack A Chinese shadow falls on Pahalgam terror attack case probe How India can use water to pressure Pakistan Buzzkill: How India can dissolve the Pakistan problem, not just swat it The 600-acre site includes a 1.2 km waterfront, dry dock, robotic steel-cutting systems, and 1,600-tonne hydraulic presses, with a fabrication capacity of 10,000 tonnes per month. The facility handles the entire value chain on-site—from material import to shipment—reducing inland transport and vendor coordination. The partnership targets sectors such as port equipment, marine infrastructure , petrochemicals , offshore EPC , and oil & gas. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Actress Spills Hollywood Trick For Slim Body: "We All Do It" nutritiouslivingtips Learn More Undo Vivek Merchant, Director, SDHI, said, 'Newbuilds, ship repairs, and heavy fabrication are central to SDHI's growth plans. This partnership with Wheel & Time enhances our heavy engineering operations. The F.A.S.T. logistics ecosystem allows EPC contractors and heavy industry players to concentrate on innovation and last-mile delivery, while we manage the complexities from fabrication to transportation.' Gautamraj Sharma, MD, Wheel & Time, said, 'We believe our collaboration brings together the best of deep fabrication infrastructure and robust logistics know-how. The F.A.S.T. ecosystem will enable clients to de-risk projects and improve certainty across timelines, execution, and delivery.' Live Events
News18
30-04-2025
- Business
- News18
Swan Defence Shares Up 5% After Company Unveils Integrated Logistics Hub In Gujarat
Last Updated: Shares of Swan Defence rose 5% after signing an MoU with Wheel & Time Shipping. They launched India's first integrated F.A.S.T. logistics ecosystem in Pipavav, Gujarat. Shares of Swan Defence and Heavy Industries Limited (SDHI) gained 5 per cent on Wednesday, April 30, following a strategic Memorandum of Understanding (MoU) with Wheel & Time Shipping Transport Logistics, a specialist in moving heavy and oversized cargo. With the alliance, SDHI has launched India's first integrated F.A.S.T. (Fabrication, Assembly, Storage, and Transportation) commercial logistics ecosystem at its state-of-the-art shipyard in Pipavav, Gujarat. The scrip was trading at Rs 115.81 per share with a gain of 5 per cent at the time of writing this report. Earlier, it closed at Rs 110.30 apiece. The F.A.S.T. model offers an unmatched turnkey ecosystem for executing heavy engineering projects in India by bringing together SDHI's advanced fabrication and waterfront infrastructure and Wheel & Time's end-to-end heavy logistics capabilities. The partnership will benefit high-value, time-sensitive projects and will target clientele dealing with material handling equipment at ports, marine infrastructure, petrochemicals, offshore EPC, oil & gas infrastructure and heavy engineering. This one-of-a-kind model is designed to help companies to shorten project execution timelines, minimize handoffs, reduce overall project risks, and offer scalable solutions connected to global shipping networks. Vivek Merchant, Director, Swan Defence & Heavy Industries Limited (SDHI) described the alliance as an important step forward for India's engineering and logistics sectors. He stated, 'Newbuilds, ship repairs, and heavy fabrication are central to SDHI's growth plans. With strong capabilities in shipbuilding and repairs, this partnership with Wheel & Time Shipping Transport Logistics enhances our heavy engineering operations. Together, we can offer customers a more integrated, end-to-end solution. The F.A.S.T. logistics ecosystem allows EPC contractors and heavy industry players to concentrate on innovation and last-mile delivery, while we manage the complexities from fabrication to transportation." Spread over 600 acres with 1.2 kilometres of developed waterfront, SDHI has India's largest dry dock with a capacity to fabricate and assemble structures of 10,000 tonnes per month. The shipyard has advanced CNC (Computer Numerical Control) and robotic systems for cutting steel. It also has powerful hydraulic presses that can handle up to 1,600 tonnes for precise manufacturing. The facility also provides the capabilities to make large sections and offers specialized equipment for lifting of heavy items. From importing material to final shipment, every phase of the value chain is handled on-site, eliminating the need for inland transport and multiple vendor coordination. Through this alliance, Wheel & Time will arrange extensive fleet of heavy-lift equipment, including Self-Propelled Modular Transporters (SPMTs), Hydraulic trailers, and Marine Transport Vessels, enabling the seamless movement of over-dimensional/oversized cargo worldwide locations. Disclaimer: The views and investment tips by experts in this report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions. First Published: April 30, 2025, 11:00 IST
