Aegis Vopak Terminals IPO opens for subscription. Should you apply?

1 month ago 1

Synopsis

Aegis Vopak Terminals launched its IPO on May 26, aiming to raise ₹2,800 crore through a fresh issue of shares. Initial subscription rates were modest, with retail investors showing more interest than other categories. The funds will be used for debt repayment, acquiring a cryogenic LPG terminal, and general corporate needs, with shares expected to list on June 2.

Company raises Rs 1,260 crore from Nomura, Aberdeen 30 other anchor investors

The initial public offering (IPO) of storage solutions provider Aegis Vopak Terminals opened for public subscription today, May 26, and will close on May 28.

As of 11:12 am, the issue had received bids for 11,03,697 shares, just 2% of the total offer size of 6,90,58,296 shares. The retail portion was subscribed 8%, while the non-institutional investor (NII) category saw 1% subscription. No bids were received from qualified institutional buyers (QIBs) so far.

Ahead of the IPO opening, Aegis Vopak Terminals raised Rs 1,260 crore from 32 anchor investors by allotting over 5.36 crore equity shares.

GMP of Aegis Vopak Terminals IPO

According to market observers, the IPO is commanding a grey market premium (GMP) of Rs 9–10, indicating a modest 4% premium over the issue price.

Should you subscribe to Aegis Vopak Terminals IPO?

“While the company’s strategic importance in India’s LPG and liquid bulk infrastructure space justifies a premium to some extent, the pricing seems to factor in strong future growth expectations. Investors should view this IPO as a play on long-term infrastructure and energy logistics growth, but must weigh the premium valuation against the company’s limited historical profitability and execution risks in upcoming capex projects.,” said Bajaj Broking.

IPO structure

The IPO comprises a complete fresh issue of 11.91 crore shares, aggregating up to Rs 2,800 crore. There is no offer-for-sale component.

Minimum investment and lot size

Retail investors can apply for a minimum of one lot, which includes 63 shares. At the upper price band, this translates to an investment of Rs 14,805. For small HNIs, the minimum application is 14 lots or Rs 2.07 lakh.

Use of funds

The proceeds will be used to repay or prepay certain borrowings, fund the acquisition of a cryogenic LPG terminal at Mangalore, and for general corporate purposes.

IPO dates and price band

The IPO will open on May 26 and close on May 28. The price band is set at Rs 223 to Rs 235 per share. The shares are expected to list on the BSE and NSE on June 2.

Financial performance

In FY24, the company posted a revenue of Rs 570.12 crore and a net profit of Rs 86.54 crore. For nine months ended Dec 2024, PAT stood at Rs 85.89 crore.