Varun Shipping Company Ltd. has proposed segregation of its shipping business, ship management business and shipping investment business into corporate entities, the company said in a statement after announcing its 18-month financial performance.It may recalled here that the Board at its meeting held on March 31 had considered and approved the composite scheme of arrangement and amalgamation between Varun Shipping Company Ltd, Varun Goa Infrastructure Ltd, Tarun Shipping and Industries Ltd, Varun Global Private Ltd, Varun Maritime Private Ltd and Varun Resources Private Ltd under the provision of Section 391 to 394 of the Companies Act.
During the quarter ended September, the company had received the no objection letter from Bombay Stock Exchange Ltd and National Stock Exchange of India Ltd, subsequent to which the company has filed an application with Bombay High Court in November for its approval.
For the 18-month period ended September 30, the company posted a net profit of Rs. 38.36 crores on a total turnover of Rs. 784.20 crores. At the meeting held to approve the financial performance, the Board also recommended a dividend of Rs. 0.50 paise or 5% per share of Rs. 10 each, which will be paid to the shareholders on or after Jan. 25, 2013.
Varun Shipping as a company had been going through a crisis due to internal family disputes, which has been kept under wrap but widely discussed in the industry. The company has been silent on the issue.
In July, Fitch Ratings had withdrawn its long term rating on the company, due to lack of adequate information.
According to an ICICI Securities report in August 2011, Varun Shipping’s owned fleet has been reduced to just six vessels and the remaining eight assets are on a sale and lease back arrangement with associate companies.
As per the company’s website, it has a total fleet of 20 vessels of which 10 are LPG carriers, 3 are crude oil tankers and seven are anchor handling towing and supply vessels.
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