Aegis Vopak Terminals' ₹2,800 Cr IPO to Open on May 26: Check Price Band, Timelines and More

Price Band and Timeline

Aegis Vopak Terminals Limited is set to launch its Initial Public Offering (IPO), with the subscription window opening on May 26, 2025, and closing on May 28, 2025. The company has fixed the price band for the issue at ₹223 to ₹235 per equity share. Initially planned at ₹3,500 crore, the IPO size has been revised downwards to ₹2,800 crore. The entire offering is a fresh issue of shares.

Subscription Details

The IPO has allocated shares to different investor categories. Up to 10% of the issue is reserved for Retail Individual Investors (RII), up to 75% for Qualified Institutional Buyers (QIB), and up to 15% for Non-institutional Investors (NII). Retail investors can apply for a minimum of 1 lot, consisting of 63 shares, requiring a minimum investment of ₹14,805.

The basis of allotment is expected to be finalised on May 29, 2025, with refunds initiated on May 30, 2025. The shares are scheduled to be listed on the BSE and NSE on June 2, 2025.

IPO Objectives and Use of Proceeds

The primary objective of the IPO is to raise funds for specific purposes. A portion of the net proceeds will be used to repay or prepay certain outstanding borrowings, aiming to reduce the company's debt burden. Funds are also earmarked for capital expenditure, specifically for acquiring a cryogenic LPG terminal in Mangalore. The remaining funds are designated for general corporate purposes.

Company Profile and Market Position

Aegis Vopak Terminals positions itself as the largest third-party tank storage operator in India for liquified petroleum gas (LPG) and liquid products, based on storage capacity as of June 30, 2024, according to a CRISIL Report. The company operates a network of terminals across five key ports on India's West and East coasts. These facilities manage approximately 23% of India’s liquid imports and 61% of total LPG import volumes.

The company's infrastructure includes around 1.50 million cubic meters of storage capacity for liquid products and 70,800 metric tons of static capacity for LPG. Its terminals handle a diverse range of products, such as petroleum, vegetable oils, lubricants, chemicals, and LPG (propane and butane). Aegis Vopak Terminals operates through two main segments: the Gas Terminal Division for LPG and the Liquid Terminal Division, which manages over 30 types of chemicals and more than 10 types of edible and non-edible oils. The network comprises 2 LPG terminals and 16 liquid terminals.

Financial Performance Snapshot

Aegis Vopak Terminals reported revenue from operations of ₹1,540.28 million for the quarter ending June 30, 2024, and ₹5,617.61 million for the year ending March 31, 2024. Profit After Tax (PAT) stood at ₹257.77 million for the June 2024 quarter and ₹865.44 million for the year ending March 31, 2024. Total borrowings were ₹25,841.82 million as of June 30, 2024. Key performance indicators include an annualised Return on Equity (RoE) of 10.08% as of June 30, 2024, and Return on Capital Employed (RoCE) of 9.61% for the same period. The Debt/Equity ratio is reported at 2.59.

Industry Context

The company operates within India's energy sector, which saw its primary energy supply grow at a CAGR of 3.6% between 2018 and 2023. LPG consumption has also grown significantly at a CAGR of 7.3% between Fiscal 2014 and 2024, increasing its share in the energy basket. Fossil fuels continue to dominate India's energy mix, accounting for 95% of total energy needs, which sustains high demand for storage and handling terminals and presents long-term growth opportunities for companies like Aegis Vopak Terminals.

Strengths and Risks

Key strengths highlighted include the company holding 11.93% of India’s total LPG tank storage capacity and controlling 26.64% of third-party liquid storage capacity. Operating 18 terminals across 5 strategically located ports is also noted as a strength.

However, potential risks are also identified. These include a high customer concentration risk, with 48.85% of revenue derived from top clients, and a significant dependence on the oil and gas sector, which accounts for 42.47% of revenue. The concentration of most terminals on the west coast poses a regional risk. The limited operating history is also mentioned as increasing uncertainty in evaluating future prospects.

The IPO is being managed by ICICI Securities, BNP Paribas, IIFL Securities, Jefferies India, and HDFC Bank as the Book Running Lead Manager, with Link Intime India Private Ltd serving as the Registrar. 

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