Indian tycoon Harry Banga’s Caravel Group has become the biggest shareholder in Pacific Basin Shipping, in a major bet on demand for transport of dry bulk commodities.
Caravel owned 672.7 million shares in Pacific Basin as of June 12, representing a just over 13 per cent stake in the company, as per filings to the Hong Kong stock exchange. Caravel disclosed a 7.5 per cent stake in late March, and since then has steadily expanded its holding in Pacific Basin, which has a market capitalisation of $1.3 billion.
In a statement to Bloomberg News, Caravel Group said it “is a committed long-term shareholder, and the position reflects the company’s confidence in Pacific Basin’s future”. Banga is Caravel’s chairman and CEO. Caravel’s business spans ship management, commodity trading, and asset management. It currently operates, manages or owns over 650 vessels, as per its website.
Pacific Basin owns and operates dry bulk cargo vessels and had adjusted revenue of about $2.6 billion last year. It’s the sixth-largest marine shipping firm listed in Hong Kong by market value, data compiled by Bloomberg shows.