Upcoming IPO: Aegis Vopak Terminals gets SEBI nod to launch ₹3,500 crore IPO

Upcoming IPO: Aegis Vopak Terminals Limited has been issued final observation by the Securities and Exchange Board of India (SEBI), allowing them to raise ₹3,500 crore through an initial public offering (IPO). The company submitted its IPO documents to SEBI on November 18, 2024.

Aegis Vopak Terminals is the largest third-party owner and operator of storage terminals for liquefied petroleum gas (LPG) and liquid products in India based on storage capacity, according to the CRISIL Report dated June 30, 2024.

The company manages a network of tank storage terminals with a total capacity of around 1.50 million cubic meters for liquid products and 70,800 metric tons for LPG static capacity as of June 30, 2024. They provide secure storage facilities and related infrastructure for liquids including petroleum, vegetable oil, lubricants, and a range of chemicals and gases such as LPG (comprising propane and butane).

According to the Draft Red Herring Prospectus (DRHP), the company’s listed peers include Adani Ports and Special Economic Zone Limited, which has a P/E ratio of 33.68, and JSW Infrastructure Limited, with a P/E ratio of 49.42.

IPO Details

Aegis Vopak Terminals IPO includes a fresh issuance of equity shares with a face value of ₹10 each from Aegis Vopak Terminals, totaling an amount of up to Rs. 3,500 crore, and will proceed pending necessary approvals and market conditions.

The company plans to allocate the net proceeds from the issue for (i) paying off or prepaying all or part of certain outstanding loans taken by the company, (ii) financing capital expenditures for the contracted acquisition of the cryogenic LPG terminal in Mangalore, and (iii) general corporate activities.

The Book Running Lead Managers for this issue are ICICI Securities Limited, BNP Paribas, IIFL Capital Services Limited (previously known as IIFL Securities Limited), Jefferies India Private Limited, and HDFC Bank Limited.

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