Aegis Vopak Terminals IPO to open on May 26: Check price band, objectives, financials and key details

Aegis Vopak Terminals, which owns and operates a network of storage terminals across six Indian ports, will launch its ₹2,800-crore initial public offering (IPO) on May 26. The IPO will remain open for subscription till May 28. The IPO is a complete fresh issue of over 11 crore shares.

Incorporated in 2013, Aegis Vopak Terminals is a joint venture between Aegis Logistics, a listed logistics service provider in the oil, gas and chemicals sector and Vopak India BV, a subsidiary of Royal Vopak.

As of December 31, 2024, the company operates 2 LPG storage terminals at 2 Indian ports and 18 liquid storage terminals across 6 Indian ports, strategically located at Haldia, Kochi, Mangalore, Pipavav, Kandla, and Navi Mumbai. These ports collectively handle approximately 23% of India’s liquid imports and 61% of total LPG import volumes.

Ahead of its IPO launch, Aegis Vopak Terminals raised 1,260 crore from anchor investors. A total of 5.36 crore shares were allocated to anchor investors at ₹235 per share. Around six domestic mutual funds invested in the company through a total of 17 schemes. HDFC Mutual Fund, 360 ONE Special Opportunities Fund, Bandhan Mutual Fund and Motilal Oswal Mutual Fund were among key mutual funds.

Aegis Vopak Terminals IPO details

Aegis Vopak Terminals IPO aims to raise ₹2,800 crore through its public issue. The IPO is a fresh issue of over 11.9 crore shares.

The company has fixed the price band of the issue at ₹223 to ₹235 per share. The lot size, or the minimum bid quantity to apply for the issue, is 63 shares. This equates to a minimum investment amount of ₹14,805 per lot at the upper end of the price band for retail investors.

Aegis Vopak Terminals has appointed ICICI Securities, BNP Paribas, IIFL Securities, HDFC Bank and others as book-running lead managers of the IPO, while MUFG Intime India (Link Intime) is the registrar for the issue.

Aegis Vopak Terminals IPO: Important dates

Aegis Vopak Terminals IPO will remain open for bidding from 26 to 28 May. After the bidding is closed, the allotment of shares is expected to be finalised on May 29.

Successful bidders can expect the shares to be credited to their demat accounts by May 30, with others receiving refunds on the same day. Aegis Vopak Terminals shares are scheduled to list on the BSE and NSE on June 2.

Aegis Vopak Terminals IPO objective

The company plans to raise ₹2,800 via a fresh issue. Net proceeds from the IPO will be used towards the following objectives:

• Repayment of outstanding borrowings: The company will use ₹2,015.9 crore out of the net proceeds to repay/prepay certain outstanding borrowings.
• Capital Expenditure: The company will use ₹671.3 crore to fund capital expenditure towards the contracted acquisition of the cryogenic LPG terminal at Mangalore.
• General corporate purposes: Part of the IPO proceeds will be used for general corporate purposes not exceeding 25% of the gross proceeds.

About the company

Aegis Vopak Terminals is one of India’s largest third-party owners and operators of tank storage terminals for LPG and liquid products. The company operates across two primary business divisions — the gas terminal division, which involves storage and handling of LPG (including propane and butane), and the liquid terminal division, which manages storage of petroleum, chemicals, vegetable oils, and other products.

The company has a diversified customer base covering traders, manufacturers, and chemical and fuel marketing companies, both domestic and international. As of December 31, 2024, approximately 47.14% of its customers utilised multiple terminals operated by the company to efficiently access markets in various regions.

The company plans to further expand its infrastructure, with ongoing projects expected to add 1.1 lakh MT of LPG storage capacity by FY26, taking the total LPG storage capacity to 2.00 lakh MT. The company recently added approximately 101,900 cubic metres of liquid storage capacity at its JNPA terminal in Navi Mumbai.

Financial snapshot

Strengths

• Largest operator of storage terminals: The company is one of India's largest third-party owner and operator of tank storage terminals for LPG and liquid products, with a network holding approx 1.50 million cubic metres for liquids and 70,800 MT for LPG, contributing approx 11.52% of national LPG capacity and ~25.53% of third-party liquid storage.
• Strong financial performance: The company has a strong financial performance, with revenue increasing from ₹353.33 crore in FY23 to ₹561.76 crore in FY24, and EBITDA rising from ₹231.96 crore to ₹405.89 crore over the same period. Backed by industry-leading efficiency and low capital intensity, they have also maintained high EBITDA margins of 65.16% in FY23 and 71.19% in FY24.

Risks and threats

• Operational risks: The company is exposed to operational risks such as equipment failure, accidents, natural disasters, and hazardous material incidents, which, despite strong safety protocols and limited past incidents, could adversely impact its business, operations
• High dependence on clients: The company derives a significant portion of its revenue from its top 10 customers (over 44% in recent periods), and any loss, reduction, or non-renewal of these short-term contracts could adversely impact its business and financial performance.