Swan Defence shares rise 4% to hit 52-week high on Rs 1,897 crore tanker order prospect

Shares of Swan Defence and Heavy Industries rose 4.1% to Rs 2,850 on BSE on Monday after the company emerged as the lowest bidder for a Rs 1,897 crore order to build four medium-range product tankers for a proposed joint venture led by state-run Shipping Corporation of India (SCI). The potential contract would strengthen the shipbuilder's order book as India looks to revive domestic shipbuilding after a gap of 25 years in locally built oil tankers.

The stock touched an intraday high of Rs 2,874.55, which was also its 52-week high and the upper price band for the day. The company quoted around $48.9 million per vessel when price bids were opened on Friday, October 9, beating state-run Cochin Shipyard Ltd, which quoted around $4 million more per vessel.

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Swan Defence's tanker opportunity after 25 years

The proposed order involves two firm and two optional dual-fuel-ready medium-range product tankers, each capable of carrying 17,000-18,000 tonnes of cargo. The contract, once signed, would mark the first attempt in a quarter of a century to build oil tankers locally.

Swan Defence has a technical tie-up with Samsung Heavy Industries, one of South Korea's top three shipbuilders. The company restarted operations in 2024 under new management led by Swan Corp and has since secured multiple vessel-building contracts.

Growing order book supports shipbuilding ambitions

The shipyard has secured an order from Energy ONE Ltd to build four dual-fuel ammonia bulk carriers in a deal valued at $240-280 million. It has also won a $227 million contract to build six chemical tankers, each with an 18,000-tonne capacity, for European shipowner Rederiet Stenersen AS.

Separately, Swan Defence has signed a contract with Copenhagen-based Svitzer Group to construct four biofuel-powered TRAnsverse tugs worth around Rs 500 crore.

The proposed tanker order comes amid the government's push to strengthen domestic shipbuilding, backed by a Rs 69,725 crore package approved by the Cabinet in September 2025. If finalised, the contract would add to Swan Defence's growing pipeline of orders as the industry seeks to expand local vessel manufacturing.

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