Swan Defence shares hit upper circuit, reach record high; here's why

Shares of Swan Defence and Heavy Industries (SDHI) hit their record high in early deals today after firm said it has formalised a Memorandum of Understanding with the Gujarat Maritime Board (GMB), securing a strategic investment of Rs 4250 crore to advance India’s maritime sector.

Swan Defence stock hit upper circuit of 5% at Rs 606.15 (record high) in early deals on BSE today. Market cap of the firm climbed to Rs 3193.33 crore.    

The collaboration centres on upgrading shipyard infrastructure at Pipavav Port in Gujarat, strengthening domestic supply chains, and nurturing a sustainable talent pool for maritime operations. The shipyard, which houses India’s largest dry dock capable of constructing vessels up to 400,000 deadweight tonnes (DWT), will see significant enhancements under this initiative.

A major portion of the investment—Rs 3,500 crore—will be dedicated to expanding capacity at the Pipavav shipyard. Planned improvements include new slipways, jetties, additional cranes, block fabrication facilities, and extensive dredging. These developments are expected to bolster the shipyard’s ability to service increasing demand from both domestic and international shipbuilding markets.

Alongside capacity upgrades, a world-class Centre of Excellence (CoE) for Maritime is set to be established with an allocation of Rs 200 crore. The CoE aims to train over 1,000 industry-ready youths annually through advanced classrooms, specialised laboratories, high-tech simulators, and innovative design software, supporting progress in ship design, shipbuilding, and vessel retrofitting.

To further reinforce the maritime ecosystem, SDHI will invest Rs 550 crore in developing a 200-acre Maritime Cluster within the Pipavav facility. This cluster is envisioned as a hub for ancillary industries, suppliers, and support services, promoting innovation, operational efficiency, and economic growth in the region. The maritime cluster is also positioned to enhance local economic activity and facilitate participation in global trade networks. These strategic investments underscore SDHI’s ambition to elevate India’s standing in the global shipbuilding industry while supporting national growth objectives and capacity-building initiatives.

Swan Defence & Heavy Industries is mainly engaged in the construction of vessels, repairs and refits of ships and rigs and heavy engineering.