Aegis Vopak Terminals IPO Open Now

Mumbai, May 26, 2025: The (initial public offering) IPO of Aegis Vopak Terminals Ltd commenced today, aiming to raise up to ₹2,800 crore through the issue of fresh equity shares. Despite a promising market position and favourable long-term outlook, the response on the opening day remained passive across investor categories.

IPO Details and Structure

The issue, which is open for subscription from May 26 to May 28, is priced in the band of ₹223 to ₹235 per share, with investors required to apply for a minimum of 63 equity shares and in multiples thereafter. The total offering comprises 11,91,48,936 equity shares, all of which are fresh issuances.

By 1:10 PM on May 26, the IPO had received bids for 44,84,970 shares, representing only 6% of the total 6,90,58,296 shares available for public subscription.

Category-Wise Subscription Status

• Retail Investors: 13% subscribed
• Non-Institutional Investors (NIIs): 1% subscribed
• Qualified Institutional Buyers (QIBs): 7% subscribed

While the overall subscription figures are modest, market observers expect interest to build as the offer progresses.

Grey Market Sentiment and Valuation Trends

The grey market premium (GMP) for Aegis Vopak Terminals shares has witnessed a correction following initial bidding. The GMP, which was previously around ₹15, currently stands at ₹10 per share, suggesting potential listing gains in the range of 4–5%.

Business Profile and Market Position

Established in 2013, Aegis Vopak Terminals (AVTL) operates strategically located storage terminals for LPG and liquid bulk products. These terminals are crucial for handling commodities such as petroleum derivatives, vegetable oils, industrial chemicals, and gases like propane and butane.

The company is recognised as India’s largest independent third-party storage provider in its category, with terminal facilities in key coastal regions including Mumbai, Haldia, Kochi, and Pipavav. This geographic positioning gives AVTL a central role in supporting India’s energy and chemical logistics ecosystem, particularly as demand for clean fuel alternatives such as LPG continues to rise.

Financial Performance and Valuation Metrics

For the nine months ending December 31, 2024, AVTL reported a net profit of ₹85.89 crore on revenue of ₹476.15 crore. For the full FY 2023–24, net profit stood at ₹86.54 crore, with revenue reaching ₹570.12 crore.

Post-issue, the company is expected to command a market capitalisation of ₹26,737.80 crore. While analysts acknowledge the company’s strong fundamentals and strategic relevance, there are concerns regarding valuation—with an EV/EBITDA multiple of 57x, the pricing is seen as relatively aggressive.

Anchor Investment and Allotment Breakdown

Ahead of the IPO, Aegis Vopak successfully raised ₹1,260 crore from anchor investors, allocating 5.36 crore shares at ₹235 each. The allocation structure for the IPO is as follows:

• 75% reserved for Qualified Institutional Buyers (QIBs)
• 15% for Non-Institutional Investors (NIIs)
• 10% allocated to Retail Investors

Expert Views and Investment Outlook

Market analysts are broadly optimistic about the company’s long-term growth potential, backed by a robust parentage, diversified client base, and its integral role in India’s energy transition.

“Despite high valuations limiting near-term upside, Aegis Vopak’s strong fundamentals, clean energy focus, and infrastructure capabilities make it a compelling long-term investment,” said Gaurav Garg, Analyst at Lemonn Markets Desk. “As new terminals become operational from FY26, improved profitability and stronger cash flows may drive value creation over the next 2–3 years.”

Mahesh Ojha, AVP – Research at Hensex Securities, added,

“The company is well-positioned to benefit from India’s rising LPG consumption and industrial expansion. Its assets are mission-critical, and the backing of experienced promoters justifies a ‘subscribe for the long term’ rating.”

IPO Timeline and Listing

The IPO will close on Wednesday, May 28, with share allotment likely finalised by June 1. The equity shares are expected to be listed on both BSE and NSE on Monday, June 2.

Lead Managers and Registrar

The issue is being managed by a consortium of leading investment banks, including ICICI Securities, BNP Paribas, IIFL Securities, Jefferies India, and HDFC Bank, while MUFG Intime India (formerly Link Intime) serves as the registrar for the offering.

Disclaimer: This content is only for informational purpose. It does not make any recommendation to act or invest. Please read the offer documents carefully before investing. Investments are subject to market risks and other risks. There is no guarantee of the actual returns that will be given.