Aegis Vopak Terminals IPO Opens at ₹235 Price Band

The Aegis Vopak Terminals IPO has officially opened for public subscription on 26th May 2025, with high investor interest and a notable grey market premium (GMP). The public issue aims to raise ₹2,800 crore through a 100% fresh issue of 11.91 crore shares and is one of the most anticipated IPOs in the infrastructure and energy space this year.

Quick Overview of Aegis Vopak Terminals IPO

• IPO Price Band: ₹223 to ₹235 per share

• Issue Size: ₹2,800 crores (Fresh Issue Only)

• Face Value: ₹10

• Lot Size (Retail): 63 shares (~₹14,049 at upper band)

• Open Date: 26th May 2025

• Close Date: 28th May 2025

• Allotment Date: 29th May 2025

• Listing Date: 2nd June 2025

• Stock Exchange: BSE, NSE

• Registrar: MUFG Intime India Pvt. Ltd. (Link Intime)

Grey Market Premium (GMP) Snapshot

As of 26th May 2025, the grey market premium for Aegis Vopak Terminals IPO is ₹10 per share. With the cap price at ₹235, the estimated listing price is ₹245, suggesting a modest premium of 4.26%.

GMP Trend Table:

While GMP is not an official metric, it offers a pulse on market sentiment and investor demand ahead of listing. The increasing GMP over the last week shows a revived interest, likely due to improving market conditions and favorable institutional response.

Company Profile: Aegis Vopak Terminals Limited

Aegis Vopak Terminals Limited (AVTL) is the largest independent liquid storage terminal operator in India. The company operates a diversified portfolio of liquid and gas storage terminals, including:

• Liquid terminal capacity: 2,75,000 cubic meters

• Cryogenic LPG terminal capacity: 21,000 metric tonnes

• Market share: ~25.53% of India’s third-party liquid storage capacity

AVTL’s strategic importance lies in its pan-India footprint, integrated supply chain solutions, and long-standing client relationships across the oil, gas, and chemical sectors.

Financial Performance Snapshot (FY24):

• Revenue: ₹464.81 crores

• Net Profit: ₹85.81 crores

• PAT Margin: 15.81%

• EPS (Pre-IPO): ₹0.88

• EPS (Post-IPO est.): ₹0.91

The revenue has been steady, with improving margins driven by increased utilization rates and higher throughput from core infrastructure assets.

Use of IPO Proceeds

The entire ₹2,800 crore raised from the fresh issue will be used for the following purposes:

1. Debt Reduction:
   Repayment or prepayment of borrowings including accrued interest and penalties.

2. Capital Expenditure:
   To fund the contracted acquisition of a new cryogenic LPG terminal at Mangalore. This move is expected to expand storage capacity and improve geographical presence on the west coast.

3. General Corporate Purposes:
   Operational optimization, working capital requirements, digital upgrades, and expansion feasibility studies.

This strategic fund deployment aligns with the company’s long-term plan to consolidate its position in India’s critical storage infrastructure ecosystem.

IPO Allotment Details and Lot Size

The allotment system is structured to ensure broad participation from various investor classes:

• Retail Investors:

  • Lot size: 63 shares

  • Minimum investment: ₹14,049 (at ₹235/share)

• sNIIs (Small Non-Institutional Investors):

  • Lot size: 14 lots = 882 shares

  • Minimum investment: ₹2,07,270

• bNIIs (Big Non-Institutional Investors):

  • Lot size: 68 lots = 4,284 shares

  • Minimum investment: ₹10,06,740

Technical & Valuation Metrics

Despite a high pre-IPO P/E, the strong asset base and capital investment plans lend a long-term growth trajectory that may eventually moderate valuation metrics.

Industry Outlook

India’s liquid and gas terminal industry is undergoing a phase of transformation, driven by:

• Rising energy demand

• Increased LPG imports and distribution

• Industrial growth in chemicals, petroleum, and allied sectors

• Push for cleaner fuel infrastructure

• Privatization of oil and gas logistics

Aegis Vopak, being a dominant and early player, is positioned favorably to leverage this trend.

Analyst Recommendations

Brokerages and analysts are largely optimistic on Aegis Vopak Terminals IPO. Here’s a consolidated view:

Most recommend subscribing with a long-term perspective, particularly due to the company’s expansion projects and strategic relevance.

Registrar Details

For any queries or issues related to allotment or refund:

• Registrar: MUFG Intime India Pvt. Ltd. (Link Intime)

• Email: mumbai@in.mpms.mufg.com

• Phone: 1800 1020 878 / 022 – 4918 6000

Investors are advised to keep track of allotment timelines and maintain Demat account readiness.

Risks and Considerations

While Aegis Vopak Terminals IPO is attractive, investors must be aware of the following:

• High P/E Ratio: Current earnings don’t fully justify the steep valuation.

• Debt Exposure: D/E ratio at 2.59 is relatively high, although repayment from IPO proceeds is expected.

• Regulatory Dependencies: The business is heavily reliant on compliance with hazardous goods and energy-related norms.

• Cyclicality: Any economic slowdown could hit industrial demand and reduce terminal throughput.

Despite these concerns, the fundamental business model offers consistent cash flow and high asset utilization.

Conclusion

The Aegis Vopak Terminals IPO represents a high-potential opportunity in India’s growing energy infrastructure market. Its ₹2,800 crore fresh issue will not only reduce debt but also fund a crucial LPG terminal project in Mangalore, adding to its strategic presence.

The modest GMP, strong sectoral positioning, and long-term growth visibility make it a candidate for serious consideration—especially for investors with a multi-year horizon.

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