Weak Debut! Aegis Vopak Terminals shares list at ₹220, a discount of 6.38% from IPO price

Aegis Vopak Terminals IPO listing: Shares of Aegis Vopak Terminals IPO made a weak debut on the bourses on Wednesday, May 28, as they listed at ₹220 on NSE and BSE, a discount of 4.38 percent over the issue price of ₹235.

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

The IPO concluded on an weak note, receiving bids amounting to 2.20 times the shares on offer over the three-day bidding period. A total of 14.43 crore shares were bid for, compared to the 6.55 crore shares available. The retail investor portion wasn't fully subscribed and was bid 0.81 times in the three days of bidding, while the non-institutional investor (NII) category also saw a subscription of just 0.41 times. Meanwhile, the Qualified institutional buyers (QIBs) portion was booked 3.47 times.

About the IPO

Aegis Vopak Terminals IPO was a completely fresh issue comprising 11.91 shares, with no offer-for-sale component. The minimum application size was set at 63 shares, requiring a minimum investment of ₹14,049 from retail investors.

Before the public offering, the company secured ₹1,260 crore through anchor investors.

Aegis Vopak Terminals Limited (AVTL), a third-party owner and operator of tank storage terminals, is looking to raise ₹2,800 crore through a fresh issue of 11.91 crore equity shares. The company plans to utilise the net proceeds from the offering primarily to repay or prepay certain outstanding borrowings. A portion of the funds will also be allocated towards capital expenditure, specifically for the contracted acquisition of a cryogenic LPG terminal located in Mangalore. Additionally, part of the proceeds will be set aside for general corporate purposes.

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.

About the Company

Established in 2013, Aegis Vopak Terminals was established as a joint venture between Aegis Logistics Limited and Vopak India BV.

It is a significant player in India’s liquid and gas storage infrastructure segment. The company specializes in owning and operating terminals that offer secure storage solutions for liquefied petroleum gas (LPG) and a wide range of liquid products.

AVTL’s services cater to a diverse portfolio that includes petroleum derivatives, vegetable oils, industrial chemicals, lubricants, and gases such as propane and butane. With a strong emphasis on safety and operational efficiency, the company plays a vital role in the supply chain for multiple industries.

As of June 30, 2024, AVTL managed an impressive total storage capacity of approximately 1.50 million cubic meters for liquid products, alongside 70,800 metric tons (MT) of LPG storage—underscoring its scale and capability in supporting India’s energy and industrial sectors.

Aegis Vopak Terminals Limited (AVTL) reported revenue from operations of ₹3,533.32 million in FY23, which rose to ₹5,617.61 million in FY24. For the nine-month periods ended December 31, 2023 and December 31, 2024, revenue stood at ₹3,754.19 million and ₹4,641.81 million, respectively.

The company's EBITDA also witnessed robust growth, rising from ₹2,319.61 million in FY23 to ₹4,058.97 million in FY24. During the nine months ended December 31, 2023 and 2024, EBITDA was reported at ₹2,569.19 million and ₹3,533.60 million, respectively. Correspondingly, the EBITDA margin expanded from 65.16 percent in FY23 to 71.19 percent in FY24, while margins for the nine-month periods stood at 67.49 percent and 74.21 percent, respectively.

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