Resumption of Reliance Naval operations and delivery of 1st repair.
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Strategic Partnership Between Swan Energy Limited and AG&P LNG
Overview of the Agreement:
Swan Energy Limited (SEL) has entered into a Heads of Agreement (HoA) with AG&P Terminals & Logistics (Singapore) PTE. LTD. (AG&P LNG) to form joint ventures and collaborate on LNG supply, infrastructure, and regasification projects. The agreement aligns with SEL’s vision to expand its LNG operations while leveraging AG&P’s expertise and market presence.
Key Highlights of the Partnership:
- Formation of Joint Ventures:
LNG Supply Company: SEL will hold a 51% stake, while AG&P LNG will hold 49%, focusing on LNG supply in India and other regions.
Vessel Company: SEL will own 49% equity in this venture to provide Floating Storage and Regasification Units (FSRU) and Floating Storage Units (FSU) for the Swan LNG Terminal.
- Collaboration on LNG Infrastructure:
AG&P LNG will assist in regasifying LNG into RLNG at Swan LNG’s Private Limited Terminal.
An equity participation option for AG&P LNG in the Swan Energy LNG Terminal highlights deeper integration possibilities.
- Subject to Due Diligence:
Terms will be finalized following mutual due diligence.
About AG&P LNG:
AG&P (Atlantic Gulf & Pacific Company) is a globally recognized leader in LNG logistics, offering innovative downstream solutions. The company operates with a mission to bridge gaps in the natural gas value chain and increase access to clean energy.
Key Operations in India:
Karaikal LNG Terminal:
Located in Puducherry, this terminal has an initial capacity of 3 MTPA, scalable as per demand.
It caters to city gas distribution companies, industrial users, and commercial entities.
City Gas Distribution:
AG&P manages 12 concessions covering 28 districts, serving approximately 80 million people.
Operations include delivering piped natural gas (PNG) to households and industries, as well as compressed natural gas (CNG) for vehicles.
Global Expertise:
AG&P’s LNG technology is operational across markets like the Philippines, Vietnam, and West Africa.
The company is backed by Nebula Energy LLC, focusing on LNG and carbon capture, offering additional innovation in clean energy solutions.
Potential Benefits for Swan Energy:
- Enhanced LNG Supply Chain:
Leveraging AG&P’s expertise ensures efficient LNG distribution across domestic and international markets.
- Access to Global Technology:
Collaboration with AG&P introduces advanced LNG logistics, enabling scalable infrastructure for future growth.
Strategic Outlook:
This partnership between Swan Energy and AG&P LNG combines complementary strengths to address the growing demand for LNG and natural gas in India. AG&P’s existing infrastructure in India, particularly the Karaikal terminal and city gas distribution networks, ensures an established platform for collaboration.
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Re-commencement of trading in the Equity shares of Swan Defence and Heavy Industries Limited (“SDHIL”) (formerly known as Reliance Naval and Engineering Limited):
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Does SDHIL still own all the assets of Reliance Naval ? What does this trading resumption mean for existing shareholders of Swan Energy ?
Resumption of Trading in SDHIL
The resumption of trading for SDHIL signifies the following:
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Market Access for SDHIL: Investors can now trade SDHIL shares on the stock market, providing liquidity to its equity and potentially attracting new investors.
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Valuation Clarity: The market will determine SDHIL’s valuation, offering insight into the subsidiary’s standalone financial health and operational potential.
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Impact on SEL Shareholders: As SEL is the parent company, a positive performance and market perception of SDHIL could enhance SEL’s consolidated value. However, SEL shareholders directly own SEL shares, not SDHIL shares, so the trading activity of SDHIL does not change their direct holdings.
Asset Ownership of SDHIL
SDHIL continues to own the assets previously held by Reliance Naval and Engineering Limited (RNEL). The rebranding and operational restructuring were designed to leverage these assets to strengthen its shipbuilding and heavy engineering capabilities, particularly in defense.
Thus, while SEL benefits from owning SDHIL as a subsidiary, shareholders of SEL would see the impact reflected indirectly through SEL’s consolidated financial performance and strategic synergies.
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Swan Defence and Heavy Industries Limited (SDHIL), formerly Reliance Naval and Engineering Limited (RNEL), inherited several critical assets from RNEL that provide it with a competitive edge in the defense and heavy engineering sectors. Here’s a detailed look at these assets:
- World-Class Shipbuilding and Repair Facilities
Largest Dry Dock in India: A massive dry dock measuring 662 meters in length and 65 meters in width, capable of handling vessels up to 400,000 DWT (deadweight tonnage).
Strategic Advantage: This makes SDHIL one of the few shipyards globally that can build and repair large vessels, including oil tankers, naval ships, and offshore platforms.
Multiple Slots in the Dry Dock: The dry dock can be segmented, allowing simultaneous construction or repair of multiple vessels, enhancing operational efficiency.
- Expansive Fabrication Facilities
Block Construction Site (BCS): A 2.5 million sq. ft. facility with an annual fabrication capacity of 144,000 tonnes.
This is more than the combined capacity of most Indian shipyards, giving SDHIL the ability to execute complex and large-scale projects.
Largest Pipe Shop in India: Capable of producing 1,000 pipe spools per day, meeting the demand for intricate piping solutions in ships and offshore structures.
- Offshore Fabrication Yards
A specialized offshore fabrication yard measuring 750 x 265 meters, with a floor strength exceeding 25 tonnes per sq. meter.
Applications: Ideal for manufacturing large-scale offshore structures for wind turbines, oil rigs, and subsea equipment.
- Advanced Equipment and Infrastructure
Goliath Cranes and Material Handling Systems: These cranes are essential for handling heavy blocks during ship construction, reducing turnaround time.
Semi-Automatic Fabrication Lines: State-of-the-art technology ensures precision manufacturing and adherence to global quality standards.
Automated Processes: High levels of automation in processes like welding and cutting ensure higher productivity and consistency.
- Strategic Location
The shipyard is located near Pipavav Port in Gujarat, providing:
Proximity to Key Shipping Routes: Facilitates faster delivery and access to international markets.
Logistics and Supply Chain Advantage: Access to deep-water port facilities ensures seamless movement of raw materials and finished vessels.
- Specialized Capabilities for Defense
SDHIL’s facilities are tailored for building naval and coast guard vessels, as demonstrated by the recent refit of the Indian Coast Guard’s fast patrol vessel Raj Ratan.
The infrastructure also aligns with India’s defense indigenization initiatives, such as Make in India for military hardware.
- Intellectual Property and Expertise
Design Collaboration: SDHIL’s association with leading design agencies and expertise gained through RNEL’s legacy provide an edge in creating innovative solutions for defense and commercial clients.
Skilled Workforce: A large team of engineers and technicians experienced in shipbuilding and offshore fabrication.
- Certifications and Compliance
The facilities are compliant with international maritime standards, enabling SDHIL to compete for global tenders and projects, particularly in defense and offshore energy sectors.
Competitive Edge Provided by Assets
High Capacity and Scale: The size and capacity of SDHIL’s infrastructure position it as a leader in heavy fabrication and shipbuilding in India.
Versatility: Its ability to handle diverse projects (commercial ships, defense vessels, offshore structures) ensures a robust order pipeline.
Future-Ready: Investments in renewable energy fabrication and green shipping technologies align SDHIL with emerging global trends.
By leveraging these assets, SDHIL is well-positioned to establish itself as a major player in defense, offshore energy, and heavy engineering both domestically and globally.
Source of information- RVNL 2023-24 ANNUAL REPORT
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Does anyone has an idea why trading in swan defence has again stopped?
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SWANRNEL_21012025100641_SWANDEFNSEBSE20012025RELISTING.pdf (429.5 KB)
Swan Defence and Heavy Industries: Pre-Open Session Issue & SEBI Circulars
Swan Defence and Heavy Industries Limited (formerly Reliance Naval and Engineering Limited) recently made a disclosure regarding an issue in the Special Pre-Opening Session (SPOS) on January 20, 2025. Investors were unable to place orders or sell shares beyond a circuit limit of ₹1.5 to ₹15, even though prior notice (dated January 16, 2025) had indicated that no price bands would be applied.
Regulatory References
The company cited SEBI Circulars CIR/MRD/DP/01/2012 & CIR/MRD/DP/02/2012 (dated January 20, 2012), which govern SPOS for IPOs, re-listed companies, and major corporate actions. These circulars state that no price bands should be applied during the pre-open session to allow for fair price discovery.
Potential Implications
Price Distortion: Since price bands were imposed contrary to SEBI rules, the share price may not have been determined fairly.
Regulatory Review: If stock exchanges or SEBI find this to be a systemic issue, it could lead to a review of the transactions or corrective measures.
Trading Impact: While it is unclear if this could lead to a temporary trading halt, stock exchanges may take action to prevent similar discrepancies in the future.
The company has already escalated the matter to the exchanges and is taking corrective actions. Investors should watch for further updates from BSE/NSE regarding potential resolutions.
This information is based on available disclosures and SEBI circulars, but there is a chance that some details might be incorrect. Please do your own due diligence.
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I think other income increased from sale of FSRU vessel.
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Swan Defence and Heavy Industries Ltd (SDHI), formerly known as Reliance Naval and Engineering Ltd, is a contender for Ambuja Cements Ltd’s substantial ₹2,500 crore shipbuilding contract. This contract involves constructing two 38,500-tonne Handymax cement carriers and eight 9,200-tonne clinker carriers. If awarded, it would mark SDHI’s first major commercial order since its rebranding and relaunch in January 2025.
In recent developments, SDHI has demonstrated its shipbuilding and repair capabilities by completing the refit of the Indian Coast Guard’s offshore patrol vessel, SAJAG, ahead of schedule. This achievement underscores the company’s expertise in handling complex ship repair operations efficiently.
Additionally, SDHI has been exploring international collaborations to bolster its shipbuilding portfolio. Notably, a delegation from South Korea’s Hanwha Ocean Co Ltd visited India to engage with key Indian shipyards, including SDHI’s Pipavav Shipyard, to discuss potential partnerships. These discussions aim to enhance India’s shipbuilding capabilities and meet the growing global demand for ships.
Overall, SDHI’s potential involvement in Ambuja Cements’ shipbuilding project represents a significant opportunity for the company to solidify its position in the maritime industry, aligning with its strategic focus on modernization and self-reliance.
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Quick update for Swan Defence:
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FY25 Consolidated Revenue: ₹17.53 Cr
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Other Income: ₹10.5 Cr
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Total Income: ₹28 Cr (vs ₹2.46 Cr last year)
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Net Loss: ₹181.5 Cr (vs ₹121.36 Cr in FY24)
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Cash & Cash Equivalents: ₹28.38 Cr (vs ₹18.21 Cr)
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Borrowings: ₹2,43 Cr
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Net Worth: Down to ₹292 Cr from ₹476 Cr YoY
What’s changed beyond the numbers?
The company officially changed its name from Reliance Naval and Engineering Ltd to Swan Defence and Heavy Industries Ltd effective Jan 2, 2025. A symbolic but important move.
Amalgamation approved with Triumph Offshore Pvt Ltd (TOPL) – once sanctioned by NCLT, SDHI will issue 8% redeemable preference shares (ratio: 1325 shares for every 1000 held in TOPL). This is part of a broader capital re-org.
One-time exceptional adjustment of ₹2.23 Cr related to Right of Use (ROU) assets—retrospective from FY23—impacted the results.
On the operations side, they revived shipyard activity—hence ₹7 Cr+ booked under “Revenue from Operations” this year vs nil last year.
Key Watch Points:
Still deep in losses, but signs of life operationally.
Working capital movement and cash flows improved despite losses.
Capital restructuring is a work-in-progress – pending regulatory approvals.
The bulk of debt still looms large (~₹2430 Cr total liabilities incl. leases).
Stock remains under the radar – but revival story seems to be playing out slowly.
Not a recommendation—just sharing
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