Aegis Vopak Terminals IPO: Storage tank operator files draft papers with SEBI for ₹3,500 crore public issue

Aegis Vopak Terminals Limited has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) on Monday, November 18. The company aims to raise nearly ₹3,500 crore through this initial public offering (IPO), which comprises solely a fresh issue of equity shares with a face value of ₹20 per share. 

“The IPO shall comprise a fresh issue of equity shares of face value ₹10 each of AVTL (Equity Shares), for an amount aggregating up to ₹35,000 million (the Issue) and will be undertaken subject to requisite approvals and market conditions,” said the company in the exchange filing on Tuesday.

The company plans to use the money raised from the public issue to repay or prepay all or a portion of certain outstanding borrowings of the company. Aegis Vopak Terminals also plans to fund its capital expenditure towards the contracted acquisition of the cryogenic LPG terminal at Mangalore and use the rest for general corporate purposes, according to the official filing. 

ICICI Securities Limited, BNP Paribas, IIFL Capital Services Limited (formerly known as IIFL Securities Limited), Jefferies India Private Limited, and HDFC Bank Limited are the bookrunners for the public issue, while LinkIntime is the registrar for the offer.

About the company

Aegis Vopak Terminals Limited is a joint venture between the promoters, Aegis Logistics, and the Dutch tank storage firm subsidiary, Vopak India BV. The company operates tank storage terminals for liquified petroleum gas (LPG) and liquid products. 

According to the LinkedIn profile, the company's network of terminals is currently located in six strategic ports along India's east and west coasts. 

Aegis Logistics Ltd is listed on the domestic stock indices, and the shares closed 0.49 per cent lower after Tuesday's trading session at ₹839.40, compared to ₹843.55 at the previous market close.

The Dutch parent company Vopak's Group Chief Financial Officer told the news agency Reuters that he sees “massive potential in terms of trading at the Indian Stock Exchange,” according to a report dated October 30.