Varun in spending spree

Mumbai-based Varun Shipping said it will invest $445 million to expand its fleet of tankers, gas carriers and offshore vessels over the next 6-8 months, a senior official said.

The company, which has its secondary listing offer in Singapore on hold, plans to raise $52 million through a preferential equity issue or optionally fully-convertible warrants to foreign investors, venture capital funds and promoters. The money raised would be used to add more vessels to its fleet, managing director Yudhisthir Khatau said.

“In the interim phase, the company can continue to expand its fleet while keeping the Singapore option in mind,” Khatau said at a press conference.

Varun, India’s largest owner of LNG vessels by tonnage, plans to fund its expansion from internal accruals that includes sale of ships, loans and from the preferential issue, he said.

The company, which now has 17 vessels, is looking for second-hand ships in the gas, liquid product segments, platform and multi-support vessels and anchor handling tugs with a short delivery period.