Swan Defence shares skyrocket 569% in 6 months: Here's why stock hit 5% upper circuit today

The shipbuilding firm got into a strategic Memorandum of Understanding (MoU) with Sagarmala Finance Corporation Limited (SMFCL), India’s maritime-focused NBFC. Under the partnership, Swan Defence and SMFCL will jointly explore projects including building new ships, ship repairs and ancillary maritime infrastructure for support under the Maritime-focused Equity Fund (MfEF), the company had said.

“The MoU covers four strategic areas across technical and commercial evaluation, financing, project execution, and ecosystem development to advance shipbuilding in line with Maritime India Vision 2030, PM Gati Shakti, and India's goal of becoming a global shipbuilding leader,” Swan Defence said in a regulatory filing on September 20.

Swan Defence and SMFCL will carry out feasibility studies on project design, yard capacity, vessel types, and technology integration. The partnership aims to advance sustainable shipbuilding through green fuels, energy-efficient designs, and digital shipyards, while also boosting local supply chains, vendor development, and backward linkages to support India’s maritime manufacturing ecosystem.

Under the MoU, the partners will develop a financing plan covering capital structure, equity, debt, and credit enhancements, while identifying co-financiers like multilateral institutions, government agencies, and private investors.

“This partnership will generate high-value jobs, boost exports, strengthen supply chains, and position India as a leading force in the global maritime economy,” said Rear Admiral Vipin Kumar Saxena (retd), CEO, Swan Defence and Heavy Industries.

Swan Defence (formerly known as Reliance Naval and Engineering Limited) and SMFCL will explore opportunities to boost vessel exports and engage in international shipbuilding value chains, while also developing a collaborative framework for industry-academia partnerships, skill development, and capacity building for the maritime workforce.

In a separate filing, the company also said that it has signed a Memorandum of Understanding (MoU) with the Gujarat Maritime Board (GMB) for a strategic investment of ₹4,250 crore. The ₹4,250 crore investment will be deployed across three key projects at the shipyard in Pipavav Port, Gujarat, that is home to India's largest dry dock, with capacity to build vessels up to 400,000 DWT.

The partnership will invest ₹3,500 crore to expand shipyard capacity, including the development of slipways, jetties, additional cranes, block fabrication facilities, and dredging operations. This expansion will significantly enhance the shipyard’s ability to meet both domestic and international shipbuilding demand, Swan Defence stated.

A ₹200 crore world-class Centre of Excellence for Maritime will be established at the shipyard to train over 1,000 industry-ready youth annually, featuring smart classrooms, specialised labs, advanced simulators, and cutting-edge design tools for innovation in ship design, building, and retrofitting.

The shipbuilding firm will also develop a 200-acre maritime cluster within the shipyard for an investment of ₹550 crore. The cluster will serve as a maritime hub for ancillary industries, suppliers, and support services to foster innovation, improve efficiency, boost the local economy, and strengthen global trade.

“By investing in infrastructure, capacity, and skill development, we will add world-class capabilities that accelerate India’s shipbuilding ecosystem. SDHI is laying the foundation for a new era of growth and cementing our nation's place on the global maritime map for decades to come,” Saxena commented.

Over a month’s time, Swan Defence shares have soared 48%, while for six months’ time, they have skyrocketed 569%.