Shares of Swan Defence and Heavy Industries Ltd (Swan Defence), India’s largest shipbuilding and heavy fabrication firm, were locked 5% higher on 11 November after the company announced on LoI worth $220 million. 

In its regulatory filing, the company said that they have signed a Letter of Intent (LoI) with Rederiet Stenersen AS, a European ship owner and operator, for the building of six IMO Type II chemical tankers, each with an 18,000-DWT capacity.

The purchase, worth approximately $220 million, represents a significant milestone for India’s shipbuilding exports, with an option to build six additional boats of the same class.

Vivek Merchant, director, Swan Defence, said, “This partnership marks a defining moment for Swan Defence and for Indian shipbuilding — our first major export of advanced chemical tankers to Norway. We see this as a step towards realising India’s maritime ambitions by building large and complex vessels across tankers, bulkers, and specialised segments. The trust placed in us by Rederiet Stenersen AS reflects global confidence in India’s shipbuilding capabilities and Swan Defence’s commitment to deliver world-class, future-ready vessels.” 

The tanks will be built at Swan Defence’s cutting-edge factory in Pipavav, Gujarat. The ships, designed by Norway’s Marinform AS and classified by DNV, will satisfy Ice Class 1A criteria and include hybrid propulsion systems for increased efficiency, lower emissions, and improved agility.

Swan Defence stated that each vessel has been designed to be future-ready, with the flexibility to convert to methanol or LNG fuel and upgrade battery capacity to 5,000 kWh, hence improving environmental performance and adaptability to developing green technologies.

A detailed shipbuilding contract will specify delivery timelines and commercial terms.

In an exchange filing dated 6 November, the company said, “a meeting of the Board of Directors of the Company will be held on Wednesday, 12 November 2025, inter alia, to consider and approve the Unaudited Financial Results (Standalone and Consolidated) of the Company for the quarter and half year ended 30 September 2025.”

The board will also examine and accept a request to raise funds through the issuance of debentures, whether non-convertible, unlisted, or unsecured, on a private placement basis.

At 12:22 pm, the shares of Swan Defence were locked 5% higher at Rs 986.75 on NSE.

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