Aegis Vopak Terminals Limited is a strategic joint venture between Aegis Logistics Limited India and Royal Vopak of the Netherlands, operating a network of 20 tank terminals across six key Indian ports, including Haldia, Kandla, Pipavav, JNPT (upcoming), Mangalore, and Kochi. This network provides crucial infrastructure for oil and chemical storage, supporting the country’s growing energy and industrial sectors.

The company is launching an Initial Public Offering (IPO) with a book-built issue amounting to ₹2800 crores, consisting entirely of a fresh issue of 1191.48 lakh equity shares. The subscription window opens on May 26 2025 and closes on May 28 2025. The allotment is expected to be finalized on or about May 29 2025, and the shares are tentatively scheduled to be listed on June 2 2025 on both the BSE and NSE stock exchanges.

The price band for the IPO is set between ₹223 and ₹235 per equity share. At the upper price, the company’s market capitalization will reach approximately ₹26037.79 crores. The IPO lot size is 63 shares, requiring retail investors to invest a minimum of ₹14805. High-Net-Worth Individuals (HNIs) must subscribe for a minimum of 14 lots or 882 shares, totaling ₹207270.

The IPO is managed by a team of reputable institutions, including ICICI Securities Limited, BNP Paribas, IIFL Capital Services Limited, Jefferies India Private Limited, and HDFC Bank Limited. The registrar for the issue is MUFG Intime India Private Limited.

Financial Performance

The company has shown steady growth in revenue and profitability over recent fiscal years (figures in million ₹):

• Revenue from operations:

  • FY2022: 0.03

  • FY2023: 3559.91

  • FY2024: 5701.21

  • 9 months ended Dec 31, 2024: 4761.49

• EBITDA:

  • FY2022: -5.72

  • FY2023: 2319.61

  • FY2024: 4058.97

  • 9 months ended Dec 31, 2024: 3533.60

• Profit After Tax (PAT):

  • FY2022: -10.92 (loss)

  • FY2023: -0.75 (near breakeven)

  • FY2024: 865.44 (profit)

  • 9 months ended Dec 31, 2024: 858.91 (profit)

The steady improvement in profitability indicates the company is moving into a growth phase, benefitting from strong demand for storage infrastructure.

Key metrics for FY24 are:

• Pre-issue Earnings Per Share (EPS): ₹0.91

• Post-issue EPS: ₹0.78

• Pre-issue Price to Earnings (P/E) ratio: 258.24x

• Post-issue P/E ratio: 300.86x

• Industry average P/E ratio: 43x

• Return on Capital Employed (ROCE): 8.39%

• Return on Equity (ROE): 8.68%

• Return on Net Worth (RoNW): 7.51%

The annualized EPS based on the latest financial data is ₹1.18, with a P/E ratio of 198.03x, suggesting the IPO is priced at a significant premium compared to industry peers.

Grey Market Premium and Market Outlook

The Grey Market Premium (GMP) is zero, indicating no expected listing gains. GMP reflects informal trading sentiment but is not reliable for price discovery and should be viewed cautiously by investors.

Promoters and Industry Position

The promoters include prominent stakeholders such as Aegis Logistics Limited, Huron Holdings Limited, Trans Asia Petroleum INC, Asia Infrastructure Investment Limited, Vopak India B.V., and Koninklijke Vopak N.V.

The company operates in a critical logistics and storage sector, supporting India's energy supply chain and chemical storage needs, with strong growth prospects tied to port infrastructure expansion and increasing demand for storage capacity.

Risks and Considerations

• Extremely high P/E ratios suggest the IPO is fully priced with limited upside potential

• Historical losses in early years add caution despite recent profits

• The storage and logistics sector can be cyclical and sensitive to economic fluctuations

• Zero GMP indicates minimal speculative demand and no listing day profits expected

Conclusion

Aegis Vopak Terminals IPO offers an opportunity to invest in a leading tank terminal operator with a strategic presence across key Indian ports. However, the IPO’s valuation is at a steep premium, reflecting growth expectations but limiting near-term returns.

Final Recommendation

Investors seeking listing day gains should avoid Aegis Vopak Terminals IPO. Long-term investors should carefully evaluate the high valuation against sector growth prospects.

The Upcoming IPOs in this week and coming weeks are Neptune Petrochemicals, Aegis Vopak Terminals, Schloss Bangalore, Astonea Labs, Nikita Papers, Prostarm Info Systems, Victory Electric Vehicles International, Blue Water Logistics, Wagons Learning.

The Current active IPO are Unified Data - Tech Solutions, Dar Credit and Capital, Belrise Industries.

The Closed IPOs are Borana Weaves.