Swan Corp Limited disclosed that the promoter group, comprising Swan Realtors Private Limited and Swan Engitech Works Private Limited, has pledged a cumulative 4.35 crore shares (13.88% of total share capital) as security. The encumbrance secures a financial facility of ₹1,150 crores sanctioned to a group entity on March 24, 2026. The shares provide a security cover ratio of 1.28 over the borrowed amount, which is intended for group entity financing, not for the listed company’s direct benefit.
Details of Promoter Share Encumbrance
Swan Corp Limited has reported an encumbrance event involving the promoter group entities: Swan Realtors Private Limited and Swan Engitech Works Private Limited. The total promoter shareholding stands at 16,91,48,000 shares, representing 53.96% of the total share capital.
The cumulative shares pledged by these entities amount to 4,35,00,000 shares, which translates to 13.88% of the total share capital of Swan Corp Limited. This pledged percentage is 13.88% of the total promoter shareholding.
Individual Pledging Details
The encumbrance breakdown by entity is as follows:
- Swan Realtors Private Limited: Pledged 3,00,00,000 shares (72.13% of its individual holding).
- Swan Engitech Works Private Limited: Pledged 1,35,00,000 shares (35.15% of its individual holding).
It is noted that the pledged shares by Swan Realtors Private Limited exceed 50% of its total holding, and the combined pledged shares exceed 50% of the promoter group’s total shareholding in the company. However, the encumbered shares are not 20% or more of the total share capital.
Terms of the Encumbrance Agreement
Both transactions were created on March 24, 2026, and both involve a Pledge of shares.
Specific Details for Swan Realtors Private Limited (Pledged: 3.00 crore shares / 9.57% of capital)
- Beneficiary (X): IDBI Trusteeship Services Limited.
- Nature of Beneficiary: The entity is not a scheduled commercial bank or financial institution; its role is that of a Security Trustee.
- Other Entities: The agreement involves Swan Corp Limited, Swan Realtors Private Limited, Swan Defence and Heavy Industries Limited, and IDBI Trusteeship Services Limited.
- Debt Instrument Relation: The encumbrance is not related to debt instruments like debentures or commercial paper.
Specific Details for Swan Engitech Works Private Limited (Pledged: 1.35 crore shares / 4.31% of capital)
- Beneficiary (X): IDBI Trusteeship Services Limited.
- Nature of Beneficiary: The entity acts as a Security Trustee.
- Other Entities: The agreement involves Swan Corp Limited, Swan Engitech Works Private Limited, Swan Defence and Heavy Industries Limited, and IDBI Trusteeship Services Limited.
- Debt Instrument Relation: The encumbrance is not related to debt instruments.
Security Cover and Utilization of Funds
The security cover valuation, based on filed charge documents, is Rs. 1,469.87 crores (Value of shares on the date of agreement). The amount involved (against which shares have been encumbered) is Rs. 1,150 crores.
This results in a security cover Ratio of A/B of 1.28.
The borrowed amount is being utilized for Securing Financial Facility as sanctioned to Group Entity. Specifically, the funds are not for the personal use of promoters or PACS, nor are they directly for the benefit of the listed company.
The authorization was executed in Mumbai on March 26, 2026.
Source: BSE
