Swan Defence Extends Rally, Locks In Upper Circuit On Royal IHC Deal
The contract will combine the Swan Defence's and IHC's infrastructure, and geographical advantages to design, build, and retrofit offshore oil and gas and other types of vessels
The shares of Swan Defence and Heavy Industries Ltd., was up 5% and locked in the upper circut as the scrip extended its rally last week. The counter saw an uptick in buying after the company signed an exclusive Memorandum of Understanding with European offshore oil and gas vessel leader Royal IHC.
The contract announced on Sept. 24, will combine the partners' infrastructure, and geographical advantages to design, build, and retrofit offshore oil and gas and other types of vessels. The partnership is set to explore opportunities to build Offshore Construction Vessels, Pipe Laying Vessels, and Multi-Purpose Offshore Support Vessels at SDHl's shipyard in Pipavav Port, Gujarat.
"Leveraging IHC's expertise in design, engineering, equipment, and project management, alongside SDHl's advanced shipbuilding infrastructure, skilled workforce, and resources. The partnership will strengthen indigenous capabilities and position India as a competitive player in the global shipbuilding industry," the filing said.
"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 and 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 of Swan Defence.
Derk te Bokkel, chief executive officer of Royal IHC also added, "This agreement marks a significant step in strengthening our presence in Asia by partnering with India's largest shipyard. Together with SDHl's infrastructure and capabilities, we can deliver reliable and advanced offshore solutions to meet the evolving needs of the global energy market.
Swan Defence Share Price
Swan Defence stock rose as much as 5% during early trade to Rs 605.9 apiece on the NSE. It was locked in the upper circuit of Rs 605 at 5% gains that compared to an 0.29% advance in the benchmark Nifty 50 as of 9:35 a.m.
The scrip has returned 1503% on a year-to-date basis. The total traded volume so far in the day stood at 3.8 times its 30-day average. There are no Bloomberg analysts covering the stock.
