Nikhil Kamath, Quant MF back Swan Defence’s Offer For Sale

Investor Nikhil Kamath and Quant Mutual Fund (MF) anchored a significant portion of Swan Defence and Heavy Industries Limited’s (SDHI) Offer for Sale (OFS), signalling interest for defence stocks in the wake of war in West Asia.

The OFS, undertaken by promoter Hazel Infra Limited, was oversubscribed 1.2 times, with demand largely driven by long-term institutional investors. Sources indicated that the issue raised around ₹500 crore, with the average realised price in the ₹1,905-₹1,910 range. The OFS opened on March 18, 2026, and concluded over the last weekend. SDHI declined to comment on the issue. 

Other institutional participants included Bank of India, reflecting a preference for stable, long-horizon capital. The issue is learnt to have been oversubscribed by about 20% within the long-term investor category, with limited participation from short-term or hedge fund investors.

Market participants said the strong response comes despite ongoing global uncertainties and highlights continued investor interest in India’s shipbuilding and defence sectors.

Swan Defence and Heavy Industries which operates the country’s largest dry dock, has in recent months secured orders including six chemical tankers from Norway-based Rederiet Stenersen AS and a defence export order from the Royal Navy of Oman.

The company’s order inflow reflects growing traction in both commercial and defence segments, positioning it to benefit from improving global demand and rising outsourcing of specialised shipbuilding work.

The company has also delivered 10 repair projects, including Indian Coast Guard vessels, commercial ships and offshore rigs, ahead of schedule, indicating operational stabilisation.