Swan Energy Limited (BSE:503310), which took management control of Reliance Naval and Engineering in January under a bankruptcy proceeding, plans to raise around INR 40,000 million through a qualified institutional placement of shares that will be launched around February 20, sources said. The funds raised through the QIP issue will be used to reduce debt, project expansion, and modernisation of the shipyard belonging to RNAVAL. The pricing for the QIP will be known closer to the date of the issue, but sources said that the price could be within the range of INR 680-INR 700 a share and likely at the upper end of that range.

Swan Energy's shares are currently trading in the range of INR 723-INR 746 each, having risen steeply from the INR 260 levels in August last year. SBI Life Insurance, SBI Mutual Fund, and Life Insurance Corporation are likely to be the anchor tenants, while other investors could be Quant MF, Tata MF, Bandhan MF, HDFC MF and HDFC Life Insurance, Bay Capital, BoFA, Ovata Capital, BNP Paribas, Infini Capital ITI, Goldman Sachs, and others.