Aegis Vopak Terminals IPO invites bids; GMP at 6%: Should you subscribe?\nThe unlisted shares of Aegis Vopak Terminals were trading at ₹249.5, commanding a grey market premium (GMP) of ₹14.5 or 6.17 per cent compared to the upper price band of ₹235\nRajiv Chohan, President (Business Development) Aegis Vopak Terminals, Payal Dave, Consultant and Murad Moledina, Non-Executive Director, Aegis Vopak Terminals\nDevanshu Singla\nNew Delhi 4 min read Last Updated : May 26 2025 | 9:13 AM IST\nListen to This Article\nAegis Vopak Terminals IPO: The initial public offering (IPO) of chemicals and oil storage and logistics solutions provider Aegis Vopak Terminals opens for public subscription today, Monday, May 26, 2025. At the upper price band, the company aims to raise ₹2,600 crore from the public offering. Aegis Vopak Terminals has already raised ₹1,259.99 crore from 32 anchor investors at the upper price band of ₹235 per equity share ahead of the public offering's opening.\nAegis Vopak Terminals aims to raise ₹2,800 crore through the public offering comprising a fresh issue of 119.14 million equity shares. There is no offer for sale (OFS) component. The three-day subscription window will close on Wednesday, May 28, 2025. According to the red herring prospectus (RHP), the basis of the allotment of shares is expected to be finalised on Thursday, May 29, 2025. Shares of Aegis Vopak Terminals will be listed on both exchanges BSE and NSE tentatively on Monday, June 2, 2025. The company has set the price band in the range of ₹223 to ₹235 per equity share. Retail investors would require a minimum investment amount of ₹14,049 to subscribe for at least one lot comprising 63 shares. MUFG Intime India serves as the registrar for the issue. ICICI Securities, BNP Paribas, IIFL Capital Services, Jefferies India and HDFC Bank are the book-running lead managers.\nAccording to the RHP, the company plans to utilise the net issue proceeds for repayment or prepayment of all or a portion of certain outstanding borrowings and funding capital expenditure towards contracted acquisition of the cryogenic LPG terminal at Mangalore. The remaining funds will be used for general corporate purposes.\nOn Monday, the unlisted shares of Aegis Vopak Terminals were trading at ₹249.5, commanding a grey market premium (GMP) of ₹14.5 or 6.17 per cent compared to the upper price band of ₹223, according to sources tracking unofficial markets.\nAnalysts at the domestic brokerage believe that the industry outlook is strong and Aegis Vopak Terminals being the largest player by capacity could be a key beneficiary of industry tailwinds. \"Long-term investors with high-risk appetite may subscribe to the issue, however listing gains are likely to be muted,\" SBI Securities said in a research note. According to the brokerage firm, the business model of the company is capex-driven and its core competency is to maintain the storage of gas and high-value products at desired properties. The company’s ongoing capex is fully funded and the repayment of debt to the tune of ₹2,016 crore should help boost the profitability going ahead. Moreover, as the new capacities commercialise during FY26, the company has the potential to report robust growth during the FY25E-FY27E period.\nAnalysts at Aditya Birla Capital recommend subscribing to the issue for long-term investment, citing the company's aggressive expansion and strong parentage. \"The company plans to raise ₹2,800 crore with the objective of loan repayment of ₹2,016 crore and balance for funding expansion capex. At an upper price band of ₹235, the issue is priced at a 57x FY25 EV/Ebitda,\" the brokerage said. In addition, the brokerage highlighted several risks for the company's business including slow down in India’s Oil & Gas industry, damage to assets owing to natural calamities or any other reasons, non-compliance with safety or legal regulations applicable to the business and promoters being involved in similar businesses.\nIncorporated in 2013, Aegis Vopak Terminals provides tank storage and handling services for various types of liquids and LPG gases. It is India’s largest third-party owner and operator of tank storage terminals for LPG and liquid products. The company offers secure storage and associated infrastructure for products like petroleum, chemicals, lubricants, vegetable oil and LPG. It is a joint venture between Aegis Logistics and Vopak India BV (part of Royal Vopak, a Netherlands-based leading global tank storage company).

Aegis Vopak Terminals IPO invites bids; GMP at 6%: Should you subscribe?

Aegis Vopak Terminals, a leading Indian LPG and liquid products storage provider, is launching an IPO to raise ₹2,800 crore through a fresh issue of 119.14 million shares. The company aims to use funds for debt repayment and capital expenditures, with a grey market premium (GMP) of 6.17% on unlisted shares. Analysts suggest the IPO may appeal to long-term investors, though listing gains could be muted. The IPO opens on May 26, 2025, with shares set to list on BSE and NSE on June 2, 2025.