Varun Shipping surges after Sebi revokes order against company & directors

Varun Shipping Company was locked at 5% upper circuit at Rs 8.73 at 11:50 IST on BSE after Sebi revoked directions against the company and its directors, prohibiting from accessing the securities market, after investor complaints were resolved.

Meanwhile, the S&P BSE Sensex was up 21.99 points, or 0.08%, to 26,392.97.

On BSE, so far 27,690 shares were traded in the counter, compared with an average volume of 6.24 lakh shares in the past one quarter.

The stock was locked at a high of Rs 8.73, so far during the day. The stock hit a 52-week high of Rs 13.40 on 11 June 2014. The stock hit a 52-week low of Rs 3.75 on 27 March 2015.

The stock had outperformed the market over the past one month till 11 June 2015, gaining 8.19% compared with 4.13% decline in the Sensex. The scrip had also outperformed the market in past one quarter, surging 84.89% as against Sensex's 7.98% fall.

The mid-cap stock has an equity capital of Rs 150 crore. Face value per share is Rs 10.

The Securities and Exchange Board of India (Sebi) vide its order dated 11 June 2015, revoked the directions issued against the company and its directors, vide order dated 24 April 2015, restraining and prohibiting from accessing the securities market and from buying, selling or dealing in securities, directly or indirectly, in whatsoever manner, till all the investor grievances pending against the company are resolved within 30 days from the date of this order. The company has resolved all pending investor complaints that were the cause for the issuance of the directions. The new directions shall come into force with immediate effect, Sebi said.

Varun Shipping Company has filed the Action Taken Report with SCORES and has represented that it has resolved all the pending 90 investor complaints. SEBI has examined these submissions and is satisfied that Varun Shipping Company has redressed all the pending investors' complaints and that there are no pending complaints against the company reported in SCORES as on 21 May 2015.

In its order dated, 24 April 2015, Sebi had directed the company and directors, Mr. Yudhisthir Dilip Khatau, Dr. A. K. Bhattacharya, Mr. Khurshed M. Thananwalla, Ms. Armin Fali Pardiwala and Mr. Praveen Singh to resolve all the pending 90 investor complaints within 30 days from the date of this order, failing which they shall stand restrained and prohibited from accessing the securities market and from buying, selling or dealing in securities, directly or indirectly, in whatsoever manner, till all the investor grievances pending against Varun Shipping Company are resolved.

Varun Shipping Company reported net loss of Rs 134.96 crore in Q3 December 2014 compared to net loss of Rs 255.31 Q3 December 2013. Total income fell 89.1% to Rs 1.33 crore in Q3 December 2014 over Q3 December 2013.

Varun is a private sector shipping company in India. With its diversified fleet of 18 vessels, in the LPG and crude oil sectors, it provides a comprehensive shipping solution across the entire hydrocarbon product chain to its valued customers. It also provides its services in the offshore support sector.

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