The Hindu Business Line : Varun Shipping plans rights, global offering

VARUN Shipping Ltd, owners of the country's largest LPG fleet, has plans to come out with a rights issue as well as an international public offering to part finance its $60 million (around Rs 271 crore) capital expenditure programme.

According to company sources, as the two offerings cannot be made simultaneously, VSL is likely to opt for the rights issue first and subsequently go in for the international offering, which could either be in the form of a GDR or ADR issue. The company will be finalising the offerings at its board meeting scheduled for March 16.

The company, which recently took delivery of its fifth LPG carrier to become the owner of 65 per cent of India's LPG tonnage, is planning to acquire two or three vessels in the hydrocarbon sector in the course of the next nine months. The company's acquisition programme is aimed at making the best use of the current boom in freight market, which is expected to continue till 2007, after which they could be a market correction as new ships would be entering the market.

"We have decided to focus on the hydrocarbon sector as we see a lot of growth here, compared to the other freight segments. But we have not yet decided whether the new acquisitions will be LPG carrier or product carrier or tankers," according to a senior official of the company.

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