Swan Defence soars to all-time high on inking MoU with Europe's Royal IHC

Swan Defence and Heavy Industries shares were locked in a 5 per cent upper circuit on BSE. The stock also recorded a new high ₹606.15 per share. At 11:11 AM, Swan Defence’s share price was trading 5 per cent higher at ₹606.15 per share on BSE. In comparison, the BSE Sensex was down 0.51 per cent at 81,679.55.

 

The company’s market capitalisation stood at ₹3,193.33 crore. The stock’s 52-week high was ₹606.15 per share, while its 52-week low was ₹35.99.

Why were Swan Defence and Heavy Industries shares surging?

The buying on the counter came after the company signed a memorandum of understanding (MoU) with Royal IHC, the European offshore oil & gas vessel leader. Under the MoU, the partners will combine their expertise, infrastructure, and geographical advantages to design, build, and retrofit offshore oil and gas and other types of vessels.

 

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Royal IHC is a leading supplier of maritime technology and determined to play a leading role in making the maritime industry more efficient and sustainable. Anchored in the rich Dutch maritime history, Royal IHC continues to build on its position as a leading provider of maritime technology and craftsmanship.

 

The collaboration will focus on building Offshore Construction Vessels, Pipe Laying Vessels, and Multi-Purpose Offshore Support Vessels at SDHL’s shipyard in Pipavav Port, Gujarat. 

 

The tie-up combines the strengths of the world’s leading offshore oil & gas vessel company and India’s largest shipyard, offering integrated, cost-efficient solutions for offshore and specialised vessels. By leveraging IHC’s expertise in design, engineering, equipment, and project management with Swan Defence’s advanced infrastructure, skilled workforce, and resources, the partnership seeks to enhance India’s shipbuilding capabilities and position the country as a global player in this industry.

 

"We are delighted to partner with Royal IHC at a time when the industry is witnessing a growing demand for offshore vessels capable of serving both oil & gas and renewable energy markets. This collaboration positions us to address these emerging opportunities with world-class capabilities and competitive solutions,” said Vivek Merchant, director, Swan Defence and Heavy Industries. 

 

Swan Defence and Heavy Industries, formerly known as Reliance Naval and Engineering, is a shipbuilding and heavy fabrication company in India. Strategically located on the west coast of India, the shipyard operates the country's largest dry dock.