Aegis Vopak Terminals share price jumps 10% after weak stock market debut. Should you buy, sell or hold?

Aegis Vopak Terminals share price gained over 10 per cent in Monday's trading session despite weak listing in the Indian stock market on June 2. At 11:55 am, Aegis Vopak Terminals shares climbed to ₹242 apiece on NSE, against the listing price of ₹220.

The stock was listed on Indian bourses at a discount of 4.38 per cent over the issue price of ₹235.

The ₹2,800 crore IPO was open for subscription from May 26 to May 28.

It closed on a subdued note, garnering overall bids at 2.20 times the available shares during the three-day window. Investors bid for a total of 14.43 crore shares against the 6.55 crore on offer.

The retail investor segment fell short, receiving only 0.81 times subscription, while the non-institutional investor (NII) portion was subscribed just 0.41 times. In contrast, the qualified institutional buyers (QIBs) category saw strong interest, being subscribed 3.47 times.

Aegis Vopak Terminals IPO details

Aegis Vopak Terminals IPO was entirely a fresh equity issue, involving 11.91 crore shares, with no portion earmarked for an offer-for-sale. Retail investors had to apply for a minimum of 63 shares, requiring an investment of at least ₹14,049.

Prior to launching the IPO, the company raised ₹1,260 crore from anchor investors.

Aegis Vopak Terminals Limited (AVTL), which operates tank storage facilities as a third-party service provider, aims to generate ₹2,800 crore through the fresh issue.

The proceeds will primarily be used to repay or prepay select outstanding loans. In addition, funds will support capital expenditure, including the planned purchase of a cryogenic LPG terminal in Mangalore. A portion will also be reserved for general corporate needs.

ICICI Securities Limited, BNP Paribas, IIFL Capital Services Limited, Jefferies India Private Limited, HDFC Bank Limited are the book running lead managers of the Aegis Vopak Terminals IPO, while MUFG Intime India Private Limited ((Link Intime) is the registrar for the issue.

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