Aegis Vopak Terminals Limited, a prominent joint venture between Aegis Logistics Limited (India) and Royal Vopak (Netherlands), has launched its much-anticipated Initial Public Offering (IPO) in 2025. The company operates 20 strategically located tank terminals across six major Indian ports including Haldia, Kandla, Pipavav, the upcoming JNPT, Mangalore, and Kochi — forming a crucial infrastructure network for liquid storage in India.

IPO Details and Subscription Window

The Aegis Vopak Terminals IPO is a Book Built Issue aggregating a fresh issue of ₹2,800.00 Crores by offering 1,191.48 lakh equity shares. The IPO opens on May 26, 2025, and closes on May 28, 2025, giving investors a three-day window to apply. The allotment is scheduled for May 29, 2025, and shares are expected to be listed on the BSE and NSE around June 2, 2025.

The price band for the IPO is set between ₹223 to ₹235 per equity share, and the market capitalization at the upper band price (₹235) will be approximately ₹26,037.79 Crores. Investors can apply in a minimum lot size of 63 shares, costing ₹14,805 at the upper price band. For High-Net-Worth Individuals (HNIs), the minimum subscription is 14 lots or 882 shares, amounting to ₹2,07,270.

Lead Managers and Registrar

The IPO is managed by a consortium of experienced book running lead managers including ICICI Securities Limited, BNP Paribas, IIFL Capital Services Limited, Jefferies India Private Limited, and HDFC Bank Limited. The registrar handling allotment and share distribution is MUFG Intime India Private Limited.

Grey Market Premium (GMP) Status

The Grey Market Premium for Aegis Vopak Terminals IPO currently stands at ₹0, indicating no expected listing gains based on the company’s financials. It is important to note that GMP is an informal indicator derived from unregulated trading, so it should be treated as educational information rather than a firm price predictor.

Live IPO Subscription Update

On the first day of subscription, as of 11:00 AM on May 26, 2025, the IPO has been subscribed 0.02 times, indicating a slow start. Investors can track the subscription status live on the BSE website.

Anchor Investors Subscription

Anchor investors, who subscribe prior to the IPO opening, have committed ₹1,259.99 Crores at the upper price band of ₹235 per share. The company allocated 5,36,17,021 equity shares to anchor investors, which are allotted from the Qualified Institutional Buyers (QIBs) portion.

How to Check IPO Allotment Status

Investors can verify their IPO allotment from May 29, 2025 onwards by visiting the registrar's website and entering details such as application number, PAN, or DP Client ID.

Use of IPO Proceeds

The company plans to deploy the net proceeds as follows:

• ₹20,159.53 Million towards repayment or prepayment of certain outstanding borrowings.

• ₹6,713.00 Million for capital expenditure related to the acquisition of a cryogenic LPG terminal at Mangalore.

• Remaining proceeds for general corporate purposes.

Financial Performance & Valuation Analysis

Aegis Vopak Terminals has shown steady revenue growth from ₹0.03 Million in FY22 to ₹5,701.21 Million in FY24, with EBITDA improving significantly. Profit After Tax turned positive in FY23 and stood at ₹865.44 Million in FY24, indicating operational stabilization and growth.

The company's pre-issue Earnings Per Share (EPS) is ₹0.91 with a pre-issue Price-to-Earnings (P/E) ratio of 258.24x, and a post-issue P/E ratio of 300.86x, which is high compared to the industry average P/E of 43x. This indicates the IPO is fully priced with limited upside.

Key financial ratios include:

• Return on Capital Employed (ROCE): 8.39%

• Return on Equity (ROE): 8.68%

• Return on Net Worth (RoNW): 7.51%

Investment Outlook and Recommendation

Given the company’s valuation and current market conditions, the IPO is not expected to offer listing gains. The Grey Market Premium is at zero, and the price-to-earnings multiples are significantly above industry norms, suggesting the shares are priced aggressively.

Investors looking for short-term listing gains are advised to avoid the Aegis Vopak Terminals IPO. Long-term investors may consider the company’s strategic position in liquid storage infrastructure and steady financial improvement, but valuation remains a key consideration.

The Upcoming IPOs in this week and coming weeks are 3B Films, N R Vandana Tex Industries, Scoda Tubes,Neptune Petrochemicals, Astonea Labs, Nikita Papers, Prostarm Info Systems, Victory Electric Vehicles International, Blue Water Logistics, Wagons Learning..

The Current active IPO are Aegis Vopak Terminals, Schloss Bangalore, Unified Data - Tech Solutions.

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