The stake sale, which comes amid poor market conditions due to the Middle East conflict and challenges in the shipping or maritime industry, will help the promoters meet minimum public share norms, they told PTI.
They said the investor roadshow for the sale, which will see the promoter group divest about 5.01 percent stake, has already begun.
Once the road show ends this week, the floor price for the issue will be decided, they said.
JM Financial has been appointed as the commercial banker for the proposed stake sale, sources added.
In an exchange filing on Monday, Swan Defense & Heavy Industries said its promoter Hazell Infra has proposed to sell approximately 5.01 percent of the company’s shares through the proposed sale route through the stock exchange mechanism, according to circulars issued by the Securities and Exchange Board of India (SEBI).
Emails sent to Swan Defense & Heavy Industries and JM Financial remained unanswered by the time of publishing the story. Swan Defense operates the Pipawa shipyard, which was previously owned by bankrupt Reliance Fishing and Engineering. The company currently has a market capitalization of around Rs 12,000 crore.
Hazel Infra is a special purpose vehicle by Swan Energy to take over from Reliance Capture and Engineering Prosperity Solutions.
Swan Energy owns 74 percent in Hazel Infra and the remaining 26 percent is held by Hazel Mercantile, in which Swan is a strategic investor.
The Swan Group has interests in the textile, real estate, oil and gas and petrochemical sectors.
Swan Defense scrip, which witnessed some selling after the OFS announcement, rose 4.99 percent to close the session at Rs 2,285.05 on the BSE on Thursday.
