Aegis Vopak Terminals IPO Sees Strong Finish on Final Day of Bidding

Updated: May 28, 2025 13:53

Image Source : The Economic Times

Market Response and Subscription Status

- The initial public offering (IPO) of Aegis Vopak Terminals concluded today, marking a significant milestone for the company.

- The IPO witnessed a subscription rate of 38% on the last day, with investors showing measured interest in the offering.

- Retail investors led the charge, oversubscribing their portion by 51%, followed by Qualified Institutional Buyers (QIBs) at 44% and Non-Institutional Investors (NIIs) at 16%.

Financial Details and Valuation

- The IPO was priced within a band of ₹223 to ₹235 per share, with a total fresh issue of ₹2,800 crore.

- The company has raised ₹1,260 crore from anchor investors, reinforcing confidence in its market positioning.

- Analysts have noted that Aegis Vopak Terminals is valued at approximately ₹26,000 crore at the upper end of the price band.

Utilization of Funds

- A significant portion of the proceeds, ₹2,016 crore, is earmarked for debt repayment, strengthening the company’s financial health.

- ₹671.30 crore will be allocated for capital expenditure, particularly for acquiring a cryogenic LPG terminal at Mangalore.

- The remaining funds will be directed towards general corporate purposes, ensuring operational efficiency and future expansion.

Industry Position and Investor Sentiment

- Aegis Vopak Terminals plays a crucial role in India’s LPG storage and third-party liquid storage market, holding 11.5% of the country’s LPG storage capacity and 25.5% of the liquid storage market.

- Despite its strong market presence, analysts have flagged concerns regarding high valuation metrics, with an EV/EBITDA of 56.5x and a P/E of 227.4x, significantly higher than industry peers.

- Investors with a long-term horizon are advised to consider the IPO carefully, as the company’s capital-intensive business model requires sustained investment and operational efficiency.

Listing and Next Steps

- The IPO allotment process is expected to be finalized on May 29, with shares credited to investors’ accounts by May 30.

- The company’s stock is set to debut on the BSE and NSE on June 2, marking its official entry into the public market.

Source : Moneycontrol, MSN, Business Standard, News18.

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