Varun Shipping Company Ltd Share Price – NSE /  BSE

Shipping, Small Cap

Varun Shipping Company announced that the Board of Directors have decided to fix 31 July 2015 as the 'Demerger Record Date' for determining the shareholders entitled for the issue and allotment of equity shares by Varun Resources and Varun Global, as per the Scheme.

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Varun Shipping Company announced that according to the Composite Scheme of Arrangement and Amalgamation, the Company will be split into two separate listed entities, namely, Varun Global (ship management and shipping investment business) and Varun Resources (shipping business). As part of the scheme, the debt relating to the shipping business have been transferred to Varun Resources, which has successfully restructured its debt through joint lending forum (JLF) mechanism formulated by the Reserve Bank of India.

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Meanwhile, the S&P BSE Sensex was up 21.99 points, or 0.08%, to 26,392.97.

On BSE, so far 27,690 shares were traded in the counter, compared with an average volume of 6.24 lakh shares in the past one quarter.

The stock was locked at a high of Rs 8.73, so far during the day. The stock hit a 52-week high of Rs 13.40 on 11 June 2014. The stock hit a 52-week low of Rs 3.75 on 27 March 2015.

The stock had outperformed the market over the past one month till 11 June 2015, gaining 8.19% compared with 4.13% decline in the Sensex. The scrip had also outperformed the market in past one quarter, surging 84.89% as against Sensex's 7.98% fall.

The mid-cap stock has an equity capital of Rs 150 crore. Face value per share is Rs 10.

The Securities and Exchange Board of India (Sebi) vide its order dated 11 June 2015, revoked the directions issued against the company and its directors, vide order dated 24 April 2015, restraining and prohibiting from accessing the securities market and from buying, selling or dealing in securities, directly or indirectly, in whatsoever manner, till all the investor grievances pending against the company are resolved within 30 days from the date of this order. The company has resolved all pending investor complaints that were the cause for the issuance of the directions. The new directions shall come into force with immediate effect, Sebi said.

Varun Shipping Company has filed the Action Taken Report with SCORES and has represented that it has resolved all the pending 90 investor complaints. SEBI has examined these submissions and is satisfied that Varun Shipping Company has redressed all the pending investors' complaints and that there are no pending complaints against the company reported in SCORES as on 21 May 2015.

In its order dated, 24 April 2015, Sebi had directed the company and directors, Mr. Yudhisthir Dilip Khatau, Dr. A. K. Bhattacharya, Mr. Khurshed M. Thananwalla, Ms. Armin Fali Pardiwala and Mr. Praveen Singh to resolve all the pending 90 investor complaints within 30 days from the date of this order, failing which they shall stand restrained and prohibited from accessing the securities market and from buying, selling or dealing in securities, directly or indirectly, in whatsoever manner, till all the investor grievances pending against Varun Shipping Company are resolved.

Varun Shipping Company reported net loss of Rs 134.96 crore in Q3 December 2014 compared to net loss of Rs 255.31 Q3 December 2013. Total income fell 89.1% to Rs 1.33 crore in Q3 December 2014 over Q3 December 2013.

Varun is a private sector shipping company in India. With its diversified fleet of 18 vessels, in the LPG and crude oil sectors, it provides a comprehensive shipping solution across the entire hydrocarbon product chain to its valued customers. It also provides its services in the offshore support sector.

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Meanwhile, the BSE Sensex was down 151.25 points, or 0.55% to 27,285.46

On BSE, 10.71 lakh shares were traded in the counter as against average daily volume of 1.99 lakh shares over the past one quarter.

The stock hit a high of Rs 5.40 and a low of Rs 5.05 so far during the day. The stock had hit a 52-week high of Rs 14.85 on 26 May 2014. The stock had hit a record low of Rs 3.75 on 27 March 2015.

The small-cap stock had outperformed the market over the past one month till 24 April 2015, gaining 24.62% compared with 2.57% fall in the Sensex. The scrip, however, underperformed the market in past one quarter, falling 23.52% as against Sensex's 6.29% decline.

The company has an equity capital of Rs 150 crore. Face value per share is Rs 10.

The Securities & Exchange Board of India (Sebi) in its order dated 24 April 2015, effective immediately, directed Varun Shipping Company to resolve pending investor complaints within 30 days, failing which it would be barred from the securities market till the matters are resolved. Majority of the grievances relate to non-receipt of dividend which was announced back in February 2013 and non-receipt of interest for delay in dividend in some cases.

“It is noted that though substantial steps have been taken to distribute the dividend to non-promoter shareholders, as on 16 April 2015, all the 90 investor complaints were pending on SCORES,” Sebi order said. With regard to 87 complaints, Sebi said it is relevant to note that the company had good track record of dividend payment. In 2011, the market regulator Sebi had launched the Sebi Complaints Redress System (SCORES), a centralised web-based complaints redressal platform.

Varun Shipping Company had declared dividend of Rs 0.50 per share for financial year ended 31 March 2012 as a token dividend as it was in restructuring and had very good track record of declaring dividends uninterruptedly for past 28 years, said the Sebi notice. Presently, the company is in the process of revival through Corporate Debt Restructuring (CDR) scheme,” the order noted.

Varun Shipping Company reported net loss of Rs 134.96 crore in Q3 December 2014, lower than net loss of Rs 255.31 crore in Q3 December 2013. Total income fell 89.1% to Rs 1.33 crore in Q3 December 2014 over Q3 December 2013.

Varun Shipping Company operates a well diversified fleet of vessels, comprising of LPG carriers, double hull aframax crude tankers and Anchor Handling Towing Supply (AHTS) vessels.

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