Varun Shipping hits 52-week low as lenders impound shipping vessels

NEW DELHI: Varun Shipping Ltd slipped over 3 per cent in early trade to hit its 52-week low of Rs 11.85, after three vessels of the company were impounded by lenders even as the company had been struggling to pay its employees since October last year.

At 09:50 am, Varun Shipping was trading 2.9 per cent lower at Rs 12.05. It has hit a record low of Rs 11.85 and a high of Rs 12.15 in trade today.

"The management of Varun Shipping confirmed that some of their vessels were impounded in the past few months, but maintained that the trouble was largely due to crisis in the sector," ET reported.

Varun Shipping has a debt of more than Rs 48 lakh to Singapore-based Avalontec after they filed a suit in the Mumbai High Court claiming dues.

The impounding was the latest in the series of actions taken over the past six months by various suppliers over non-payment of dues.

"In November this year, Lisnave Estaleiros Navais, another lender, filed a suit against the company for non-payment of dues amounting to Rs 4 crore, a matter which was later settled out of court," said the ET report.