Swan Defence hits all-time high on partnership with Royal IHC; stock up 569% in 6 months

Shares of Swan Defence and Heavy Industries Ltd surged 5 per cent to hit the upper circuit in Wednesday’s trade following the company’s announcement of a partnership with Europe’s offshore oil and gas vessel maker, Royal IHC. The rally pushes the stock’s gains to more than 500 per cent over the past six months.

Swan Defence shares were locked in a 5 per cent upper circuit at an all-time high of Rs 606.15 on the BSE, up from the previous close of Rs 577.30, taking the company’s market capitalisation to Rs 3,193 crore. The stock has soared 569 per cent in six months and is now 1,584 per cent above its 52-week low of Rs 35.99.

In a filing with the stock exchanges, Swan Defence said it has signed a Memorandum of Understanding (MoU) with Royal IHC, in collaboration with Alar Infrastructure, the Indian representative of the Dutch firm.

The partnership aims to design, build and retrofit offshore oil and gas vessels as well as other specialised ships at Swan Defence’s Pipavav shipyard in Gujarat. The focus areas include Offshore Construction Vessels, Pipe Laying Vessels and Multi-Purpose Offshore Support Vessels.

The company said the deal aligns with the government’s Make in India and Atmanirbhar Bharat vision by boosting indigenous shipbuilding capabilities and enhancing cost competitiveness.

Vivek Merchant, Director of Swan Defence, commented on the partnership amid a period of rising demand for offshore vessels serving both the oil & gas and renewable energy sectors. “This collaboration positions us to address these emerging opportunities with world-class capabilities and competitive solutions,” he said.

Derk te Bokkel, CEO of Royal IHC, said, “This agreement marks a significant step in strengthening our presence in Asia by partnering with India’s largest shipyard. Together with SDHI’s infrastructure and capabilities, we can deliver reliable and advanced offshore solutions to meet the evolving needs of the global energy market.”