Aegis Logistics subsidiary acquires storage capacity for ₹75 crore, shares tank over 3%

Shares of leading gas and liquid logistics services provider Aegis Logistics dropped more than 3% on Tuesday, March 19. The company announced the acquisition of the specialised storage terminals at Mangalore to boost its total capacity.

The oil, gas and chemicals logistics company on March 18 informed stock exchanges in a filing that its subsidiary, Aegis Vopak Terminals Ltd, has approved the acquisition of specialised storage terminals at Mangalore at an estimated cost of ₹75 crore.

The acquisition will help increase its storage capacity by 44,168 KL from the current 76,000 KL. The company is also building an additional storage capacity of 41,000 KL at a cost of ₹50 crore.

The new capacity will be operative immediately and the under-construction capacity is likely to become operational in phases by the end of FY25, Aegis Logistics said.

Additional specialised storage capacity at Mangalore Port will help cater to the growing demand of storage terminals with heating arrangements up to 230 degree Celsius in the liquid division, it added.

Aegis Logistics is one of top LPG importers and handlers of LPG in India.

The company provides logistics solutions for bulk liquids and gases and operates a vertically-integrated supply chain that includes liquid and gas terminals across major ports and a robust LPG distribution channel.

The company also acquired 16,000 KL Liquid Storage Terminal at Kochi Port in FY24 and commissioned 20,000 KL in Q3FY24.

The company reported a 10% decline in revenue to ₹1,873 crore in the December quarter of FY24 against ₹2,087 crore in the year ago period.

Shares of Aegis Logistics were trading 2.99% lower at ₹385.05 apiece on NSE at 12:41 pm.