History of Varun Shipping Comp. Ltd.
YEAR EVENTS 1971 - The Comp. was Incorporated as a private limited Comp. on 29th January, & was converted into a public limited Comp. on 18th February, 1972. It was a subsidiary of Khatau Industries Ltd.
- The Company object is Owning & operating ships.
1987 - The Comp. acquired its seventh ship m.t. `Vijaydoot' in January which was also employed for movement of chemicals & vegetable oils.
- In August, the Comp. acquired a product tanker m.t.`Vishwadoot' [DWT 29,999s].
- In November, the Comp. negotiated the purchase of two more tankers. They were expected to be delivered in April 1988. The Comp. disposed of three of its old ships.
1988 - During July, the Comp. issued 55,21,811 No. of equity shares of Rs.10 each for cash at par.
1989 - The Comp. drew up a plan for a major expansion of its fleet with an investment of about Rs.200 crores.
- With a view to further expanding its fleet, the Comp. proposed to raise amounts not exceeding to Rs.200 crores either by way of equity shares or by such other instruments at such price & at such time on receipt of necessary approvals.
1991 - The Comp. issued 13,30,770 fully convertible debentures of Rs.200 to the shareholders on rights basis in the ratio of 15 FCDs for every 100 No. of equity shares held [all were taken ups]. Additional 1,99,616 debentures were allotted to retain oversubscription.
- Another 9,35,384 fully convertible debentures were offered through prospectus of which
- [is] 1,75,000 debentures reserved for preferential allotment of IFC [all were taken ups];
- [iis] 29,384 debentures to the shareholders of Carona, Ltd., Cable Corporation of India Ltd., Khatau Junker Ltd., Indokem limited and Varun Shipping Co., limited [all were taken ups];
- [iiis] 1,50,000 debentures to NRIs [only 32,270 debentures were taken ups];
- [ivs] 1,13,308 debentures to the employees [only 2,320 debentures taken ups]. The balance 4,67,692 debentures together with the subscription [all were taken ups]. Additional 1,40,308 debentures were allotted to the group companies & general public to retain oversubscription.
- Each debenture consists of two parts namely Part `A' & Part `B' Part `A' of debenture of face value of Rs.100 will be converted into 5 equity shares of Rs.10 each at a prem. of Rs.10 per equity share on 1-8-1991 or six months from the date of allotment of debentures.
- Part `B' of debenture of face value of Rs.100 will be converted into 5 equity shares of Rs.100 each at a prem. of Rs.10 per equity share on 1.6.1992 but not later than 18 months from the date of allotment of debentures.
1992 - Two additional vessels viz., MT Jala Doot of 37,243 DWT & MV. Surya Kripa of 42,628 DWT were acquired.
- 130,30,390 No. of equity shares allotted [prem. Rs.10 per shares] in conversion of Part `B' of debs.
- During the previous year, the Comp. came out with rights-cum-public issue of convertible debentures amounting to Rs. 52.12 crores.
1993 - The Comp. could improved its profit from shipping operations substantially mainly due to the enlargement & diversification of company fleet & profitable deployment of ships both for movement of national cargo as also for international cross trading. The third ship M.V. Matru Kripa, a bulk carrier of 42,605 DWT was acquired.
- 13,29,000 No. of equity shares on conversion of loans from SCICI Ltd.
- During the year, the Comp. acquired two additional vessels.
- The Comp. will be acquired its third ship, a 42605 DWT bulk carrier before September at a price of US $ 17.00 million.
- During the previous year, Government of India continued its liberalisation policy by further relaxation of controls & simplification of procedures.
- It is proposed to increase the authorised capital of Company from the present level of Rs.60 crores to Rs.120 crores increase the borrowing powers of Board of Director from the present level of Rs.400 crores to Rs.1000 crores & the power to mortgage the Company asset from 300 crores to Rs.1000 crores.
1994 - The Comp. undertook to further expansion of its fleet initially with an investment of Rs.200 crores & an additional investment of Rs.100 crores in the next stage. The Comp. is also to acquire ships that would help in movement of special cargoes for Indian trade.
- 13,29,000 shares of Rs.10 each allotted at a prem. of Rs.10 per share to SCICI on conversion of loans.
- The Comp. completed its expansion programme by acquiring the third ship, m.v. Matru Kripa, a bulk carrier of 42,605 dwt at a price of US $ 17 million.
- 1,329,000 No. of equity shares of Rs. 10 each were issued to SCICI Limited [SCICIs] as fully paid up at a premium of Rs. 10 per share by way of conversion of rupee term loans of Rs. 26.58 million.
1995 - The Company working was affected due to dry docking of special survey of seven ships & higher financial & leasing costs. In addition, offhire of two of its OSVs added to the problems.
- The Comp. acquired a LPG carrier M.V.Maharshivyas a specialised vessel for movement of LPG & other chemical gases.
- The Comp. issued 8,00,000 preference shares of Rs.100 each on preferential allotment basis. These are to be redeemed between 3 to 5 years commencing from 9th February 1999.
- The Comp. obtained in principle approval from Govt. for issue of currency convertible bonds upto US $33 million. However, the financial approval was awaited.
- The Comp. propose to establish a wholly owned subsidiary in Singapore with an investment of USD 3.50 million for the establishment of Shipping business.
- In order to diversify into other fields, & broaden the base of the Company activities, the Comp. proposes to commence businesses covered by Clauses 37, 47 & 49 of Objects Clause of Company Memorandum of Association.
- Mrs. Rina Khatau, Dr. A.K. Bhattacharya & Mr. Praveen Singh were appointed as Directors of Company.
1996 - During the year, the Comp. sold two of its smaller ships to its Singapore subsidiary & another product tanker to a finance Company.
- During the year, the Comp. acquired an LPG carrier M.V. Maharshi Vyas, which is a specialized vessel for movement of LPG & other chemical gases.
1997 - The Comp. invested an amount of Rs. 48 million in the capital of Tarun Shipping and Industries Limited by acquiring 4,800,000 No. of equity shares of Rs. 10 each at par.
- On 31st March, the Comp. has issued Redeemable Preference Shares of Rs. 2 crores on private placement basis.
1998 - 12,00,000 Pref. shares of Rs 100 each issued.
- The Comp. also issued 200,000 fresh Redeemable Preference Shares aggregating to Rs. 20 million during the year.
- The Comp. has already signed an MOA for purchase of third LPG carrier having a capacity of 52,604 cbm.
- The Comp. plans to take delivery of vessel in the month of July, & will be the largest LPG carrier in the Indian fleet.
1999 - During the year Preference shares aggregating to Rs.36.67 million were redeemed. The Comp. also issued fresh Redeemable Preference Shares amounting to Rs. 120 million during the year.
2000 - The rights issue will comprise of 3.62 crore of fully convertible debentures [FCDss] & will be issued at par.
- The Comp. is eyeing the conventional debt equity ratio of 70:30. The equity part of Rs 30 crore will be generated from the proceeds of rights issue. Varun has already received letters of intent from ICICI & Bank of India for balance debt portion.
- Varun has also chalked out a plan to enter the transportation of liquefied natural gas [LNGs]. It has already hired US based merchant banker AMA to advise it on the issue.
- Varun Shipping Comp. has tied up with Hhnajin of South Korea Essar Shipping has joined hands with Malaysia International Shipping Comp. to bag the bid.
2001
-Launches a rights issue of Rs 36.26 crore to fund its $40-million fleet addition plan. The issue involves 3,62,61,591, 14 per cent unsecured fully convertible debentures of Rs 10 each for cash at par, aggregating Rs 36,26,15,910, in the ratio of one unsecured fully convertible debenture for every one equity share held on February 9, 2001
-Promoters increase stake in the Comp. from 36% to 45%
-Financial institutions increase stake in the Comp. from 20% to 25%
2002
-Buys a 1983-build tanker with a 7,335 dead weight tonnage [DWTs] on bare-boat charter-cum demise [BBCDs] basis.
-Acquires its fourth LPG Carrier M V Maharshi Dattatreya. The new vessel has a cargo carrying capacity of 24130 m3 .
2003
-Unit Trust of India, Unit Scheme 19 sells 14,90,699 shares amounting to 2.06% of Varun Shipping Comp. Ltd., reduces its stake to 25,20,000 shares amounting to 3.48% of paid up capital of Company
2004
-Varun Shipping Board approves forfeiture of Shares
-Acquires its fifth LPG carrier [Maharshi Shivatreyas] making it the owner of India largest LPG fleet accounting for 65 per cent of total LPG tonnage at present operating under the Indian flag
2005
-Varun Shipping acquires its eighth LPG Carrier, MAHARSHI DEVATREYA on April 25, 2005
2006
-The Comp. has entered into a Memorandum of Agreement [MOAs] for acquiring its third modern double hull 2006 built Aframax crude oil tanker.
-Varun Shipping Comp. Ltd has entered into a Memorandum of Agreement [MOAs] for acquiring a Very Large Gas Carrier [VLGCs] having a cargo carrying capacity of approximately 76,644 cbm.
2007
- Varun Shipping Comp. Ltd has informed that the Comp. has taken delivery of second 16000 BHP Anchor Handling & Towing Supply Vessel with Bollard Pull in excess of 180 Tons.
-Varun Shipping has bought a Very Large Crude Carrier [VLCCs], which is claimed to be India largest LPG carrier.
2009
- Varun Shipping Comp. Ltd has informed BSE that the Board of Directors of Comp. at its meeting held on January 27, 2009, inter alia, Mr. Khurshed M Thanawalla was appointed as a Director on the Board of Directors of Comp. with effect from January 27, 2009.
