The Securities and Exchange Board of India (SEBI) has given its nod for the initial public offerings (IPOs) of Aegis Vopak Terminals Ltd. and Seshaasai Technologies Ltd., clearing the path for both companies to raise a combined Rs 4,100 crore from the public markets. The approval was issued after SEBI reviewed the draft red herring prospectuses (DRHPs) submitted by both entities.

Obtaining SEBI’s observations on a DRHP is a formal indication of the regulator's go-ahead for a company to proceed with its public issue plans.

Aegis Vopak Terminals IPO Details

Aegis Vopak Terminals Ltd., a joint venture between Aegis Logistics Ltd. and Vopak India BV (a subsidiary of the Netherlands-based Royal Vopak), has received the regulator’s clearance to raise Rs 3,500 crore via a pure fresh issue. There will be no offer for sale (OFS) component, indicating that no existing shareholders will dilute their stakes in this offering.

The company is among India’s largest third-party owners and operators of tank storage terminals, catering to liquified petroleum gas (LPG) and other liquid products. As of June 30, 2024, the company operates:

• 1.5 million cubic meters of storage for liquid products

• 70,800 metric tons of static capacity for LPG

Its service portfolio includes secure storage infrastructure for:

• Petroleum products

• Vegetable oils

• Lubricants

• Chemicals and industrial gases such as propane and butane

The proceeds from the fresh issue will be utilised for the following purposes:

• Repayment or prepayment of outstanding borrowings

• Capital expenditure, especially towards the acquisition of a cryogenic LPG terminal at Mangalore

• General corporate purposes

This IPO is expected to strengthen the company's balance sheet and help it expand its strategic storage and logistics infrastructure, particularly in a sector witnessing rising demand due to India's growing energy consumption.

Seshaasai Technologies IPO Details

Seshaasai Technologies Ltd., a provider of technology and smart card-based solutions, also received SEBI approval to launch its IPO. The offering will consist of:

• A fresh issue worth Rs 600 crore

• Offer for sale (OFS) of 78.7 lakh shares by its promoters

Promoters Pragnyat Pravin Lalwani and Gautam Sampatraj Jain will offload a portion of their equity. The company itself will not receive any proceeds from the OFS, which will go directly to the selling shareholders.

Proceeds from the fresh issue will be directed towards:

• Expansion of existing manufacturing facilities

• Repayment/prepayment of borrowings

• General corporate expenses

Seshaasai’s offerings span secure data printing, smart card manufacturing, digital identity solutions, and banking and telecom sector services, making it a critical player in India’s push towards digitisation and fintech integration.

Market Activity and Upcoming IPOs

While Aegis Vopak and Seshaasai move ahead with their IPO plans, SEBI has returned the draft papers of Rajputana Stainless Ltd., signaling that more documentation or clarification may be needed.

Additionally, the IPO of WeWork India Management Ltd. remains under review, indicating that SEBI is still evaluating aspects of its DRHP.

Strategic Importance of Both IPOs

These IPOs reflect a broader trend in the Indian capital markets — companies with strong infrastructure or tech-backed fundamentals are stepping forward to raise public funds for debt reduction, expansion, and capex. The approval of Aegis Vopak's issue is especially significant given the growing demand for energy infrastructure, while Seshaasai's issue highlights the rising importance of data security and smart technology in a digitally driven economy.

Industry experts anticipate a positive investor response, especially for Aegis Vopak, due to its role in critical storage infrastructure for fuels and chemicals — a domain that aligns with India's industrial growth and energy needs. Seshaasai, on the other hand, is likely to attract tech-savvy and fintech-focused investors looking for growth in the identity and digital transformation space.

Conclusion

With SEBI’s green signal, Aegis Vopak Terminals and Seshaasai Technologies are expected to announce their IPO timelines, pricing bands, and roadshows in the coming weeks. Both firms are positioned to capitalise on sector-specific tailwinds and investor appetite for infrastructure and tech-oriented IPOs in 2025.

Investors, analysts, and institutional players will be closely watching for the final DRHPs, expected listing exchanges, and anchor investor interest — all of which will shape the market response in the days to come.

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