Varun Shipping plans Singapore listing

Varun Shipping Company Ltd (VSCL) plans to get listed on the Singapore Stock Exchange by the next financial year as it proposes to issue Singapore depository receipts to raise resources.

"We are exploring the Singapore market but have not made any concrete plans, but the money raised would be used for acquiring more vessels," said Yudhishtir Khatau, managing director, Varun Shipping, on Tuesday.

The company has a Rs 300 crore vessel acquisition plan in the hydrocarbon sector lined up for the next year, which it intends to fund through the on-going rights issue worth Rs 65 crore and internal resources.

The company, which currently has 12 vessels, plans to acquire a couple of new ships besides one LPG carrier to be inducted within the next fortnight.

While the company has already entered into a memorandum of understanding for acquisition of its seventh LPG carrier, plans for fresh acquisitions would be crystalised after the rights issue closes on November 17, Khatau said.

VSCL vice-chairman and managing director Arun Mehta said the company, the largest LPG carrier in the country, had decided to consolidate its position in the hydrocarbon sector and enter into segments like crude tanker.

The company also planned to expand in the petro products segment and were looking into other energy areas like LNG.