Swan Defence shares hit upper circuit in early deals; here's why

Swan Defence And Heavy Industries Ltd shares hit an upper circuit of 5% in early deals on Tuesday after the shipbuilder said it secured a Category 4 order from Energy ONE Limited for the construction of four (4) 92,500 DWT dual-fuel ammonia bulk carriers - marking a first for the country.

The value of the order lies between Rs 1501 to Rs 3,000 crore. 

The first vessel is likely to be delivered in October 2029, with subsequent deliveries scheduled at four-month intervals.

Swan Defence stock hit upper circuit of 5% at Rs 1703.45 in early deals on BSE today. Market cap of the firm rose to Rs 8974 crore.    

These will be the first ammonia dual-fuel ships built in India and are also among the largest commercial vessels ever to be built at an Indian shipyard, representing a significant step forward in both technological capability and scale for the domestic shipbuilding industry. 

Vivek Merchant, Director, Swan Defence and Heavy Industries Limited (SDHI), said, "Winning this project is an important step forward for us. It reflects the confidence global stakeholders are placing in Indian shipbuilding, and in the capabilities, we have developed at Pipavav. Ammonia as a marine fuel is still at an early stage, and we are proud to be part of that transition - building vessels that are not just relevant for today but aligned with where the industry is heading.”

Energy ONE Limited is a General Partner for New Energy One (NEO), an investment fund registered in Jersey Channel Islands. NEO is committed to investing in new building green assets. With a total capital investment program of $2 billion in zero emission ships, NEO is enabling industrial end users/producers of commodities reduce their greenhouse gas (GHG) emissions.

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