Swan Energy honestly has a lot of variables currently and its not a business we can predict based on the numbers as we do not know to what extent the numbers are cooked . It is more to do with political connections and how your connections help you to grow.
Just one insight which no one has brought into picture till now is the leverage of proximity of Swan LNG Terminal and the Reliance Naval & Engineering ( Pipavav Port )
This could bring in synergies in the long run with sharing of the resources .
The reason for sale of FSRU sale would be surely get the funds ready for Reliance Naval which is the biggest trigger from Swan Energy .
Nikhil Vasantlal Merchant daughter Vinita is married to Naman M Patel, who is the nephew of Mr. Anil Ambani who was previous promoter of Reliance Naval. The bid by Swan Energy for RNEL , clearly signifies the value the asset holds and is timed to perfection with the impetus currently shown by our government towards Warships and private participation
Also , once the LNG terminal is up and ready , either Swan could give Reliance Naval the contract of building an FSRU provided it has the capability and capacity to build one or else take one on lease .
Some more interesting points.
The articles of the company were amended recently which included 2 new business areas
- Datacenter & IT
- Geospatial Mapping
The recent QIPs with Quant MF participation & BlackRock ( Jio connections again ) buying stake from the open market do give a validation to an extent that there are variables which may turn favorable for Swan in the coming years .
To me the triggers are in the below priority
- Reliance Naval
- LNG Terminal
- Geospatial Mapping
- Data Centers ( as there is no clarity on how company is planning to grow in this space )
Disc : Invested & biased
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