Aegis Vopak Terminals Limited, a prominent joint venture between Aegis Logistics Limited, India and Royal Vopak, Netherlands, is launching its much-anticipated IPO in May 2025. The company operates a strategic network of 20 tank terminals across six key Indian ports, including Haldia, Kandla, Pipavav, JNPT (upcoming), Mangalore, and Kochi, playing a vital role in India’s port infrastructure and logistics sector.

IPO Details

The IPO is a Book Built Issue raising ₹2,800.00 Crores through a fresh issue of 1,191.48 lakh equity shares. The subscription window opens on May 26, 2025, and closes on May 28, 2025. The allotment process is expected to be finalized on or about May 29, 2025, with the shares slated to list on the BSE and NSE tentatively on June 2, 2025.

The price band is fixed between ₹223 and ₹235 per equity share, with a lot size of 63 shares. Retail investors must invest a minimum of ₹14,805, while High Net Worth Individuals (HNIs) must subscribe for at least 14 lots (882 shares) amounting to ₹2,07,270. The market capitalization at the upper price band of ₹235 is estimated at ₹26,037.79 Crores.

Lead Managers & Registrar

The IPO is managed by renowned financial institutions including ICICI Securities Limited, BNP Paribas, IIFL Capital Services Limited, Jefferies India Private Limited, and HDFC Bank Limited. The registrar handling the IPO allotment and related processes is MUFG Intime India Private Limited.

Grey Market Premium (GMP) & Subscription

As of now, the Grey Market Premium (GMP) for Aegis Vopak Terminals IPO stands at ₹0, indicating no expected listing gain or speculative premium on shares pre-listing. This reflects market sentiments aligned with the company’s financials and valuation.

The live subscription update on May 27, 2025, at 10:30 AM shows the IPO subscribed 0.27 times, suggesting moderate investor interest during the early subscription days.

Anchor Investors Participation

The IPO has attracted anchor investments worth ₹1,259.99 Crores with an allocation of 5,36,17,021 shares priced at ₹235 per share. Anchor investors’ participation reflects strong institutional interest in this offering. Note that shares allotted to anchor investors come from the Qualified Institutional Buyers (QIBs) category.

How to Check Allotment Status

Investors can verify their allotment status online on or after May 29, 2025, by visiting the registrar’s website, selecting Aegis Vopak Terminals IPO, and entering application details like application number, PAN, or DP Client ID.

Use of Proceeds

The company plans to deploy the net proceeds mainly towards:

• ₹20,159.53 million for repayment or prepayment of existing borrowings.

• ₹6,713 million for funding capital expenditure, particularly for the acquisition of the cryogenic LPG terminal at Mangalore.

• Remaining funds for general corporate purposes.

Financial Performance Overview

Aegis Vopak Terminals has demonstrated steady financial growth over recent years:

• Revenue from operations rose from ₹3,559.91 million in 2023 to ₹5,701.21 million in fiscal 2024.

• EBITDA increased substantially from ₹2,319.61 million in 2023 to ₹4,058.97 million in fiscal 2024.

• The company turned profitable with a Profit after Tax (PAT) of ₹865.44 million in fiscal 2024 versus a loss in 2023.

Key financial ratios highlight a pre-issue EPS of ₹0.91, post-issue EPS ₹0.78, and a post-issue P/E ratio of 300.86x, which is significantly higher than the industry average of 43x. The Return on Capital Employed (ROCE) stands at 8.39%, with a Return on Equity (ROE) of 8.68%. These metrics point towards a fully priced IPO with limited upside potential at current valuations.

IPO Review & Recommendation

Given the premium pricing, limited listing gains indicated by the ₹0 GMP, and high valuation multiples relative to industry peers, investors are advised to avoid this IPO for listing gains. The company's solid business model and operational footprint are strengths, but the valuation leaves minimal margin for immediate gains.

This IPO represents a significant move for India’s port and logistics infrastructure sector, with Aegis Vopak Terminals aiming to consolidate and expand its presence. However, investors should weigh the valuation carefully against potential returns.

The Upcoming IPOs in this week and coming weeks are 3B Films, N R Vandana Tex Industries, Scoda Tubes,Neptune Petrochemicals, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are Blue Water Logistics, Astonea Labs, Nikita Papers, Prostarm Info Systems, Aegis Vopak Terminals, Schloss Bangalore.

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