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

Aegis 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.

Aegis Vopak Terminals IPO details

Aegis 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. 

 

According 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.  

Aegis Vopak Terminals IPO GMP

On 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 ₹235, according to sources tracking unofficial markets.

Aegis Vopak Terminals IPO - Should you subscribe?

SBI Securities  - Subscribe for long term

Analysts 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.   ALSO READ | Leela Hotel IPO opens for subscription; GMP up 3%; should you subscribe?

 

"At the upper price band of ₹235, the company is valued at EV/Ebitda and EV/Sales multiple of 56.5x and 41.6x respectively based on its 9MFY25 annualised earnings," the brokerage said.

Aditya Birla Capital - Subscribe for long term

Analysts 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.  ALSO READ | Belrise Industries IPO allotment today; check status, GMP, listing date

About Aegis Vopak Terminals

Incorporated 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).