Aegis Vopak Terminals IPO: Issue subscribed 35%, retail investors apply for 43% on day 2

The initial public offering (IPO) of Aegis Vopak Terminals was subscribed 35% on the second day of bidding for all the categories of investors. The issue, which started on Monday, May 26, will close for bidding on May 28. Investors submitted bids for 2,38,62,951 equity shares compared to the 6,90,58,296 equity shares offered for subscription by 4:50 pm on Tuesday.

The portion for retail investors was subscribed 43 per cent, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 12 per cent. The portion for qualified institutional bidders (QIBs) was booked 43 per cent.

Aegis Vopak Terminals has invited investors to purchase shares priced between Rs 223 and Rs 235 each. Applicants can buy a minimum of 63 shares, with additional shares available in multiples of that amount. The company aims to raise Rs 2,800 crore through this IPO, which consists entirely of a fresh share offering of up to 11,91,48,936 equity shares.

However, the grey market premium (GMP) for Aegis Vopak Terminals has shown some corrections due to lukewarm bidding. Currently, the shares are trading at a GMP of Rs 10 in the unofficial market, indicating a potential listing gain of about 4-5% for investors. This is a decline from the Rs 15 GMP seen before the issue commenced.

The book-running lead managers for the Aegis Vopak Terminals IPO include ICICI Securities, BNP Paribas, IIFL Securities, Jefferies India, and HDFC Bank, with MUFG Intime India (Link Intime) serving as the registrar for the issue. The company's shares are set to be listed on both the BSE and NSE on Monday, June 2.

Aegis Terminals stands out as India's top independent third-party storage provider for LPG and liquid bulk products, with strategically positioned terminals at key coastal locations including Mumbai, Haldia, Kochi, and Pipavav. The company plays an essential role in the nation's energy and chemical logistics sectors, particularly as the demand for LPG and industrial growth rises, noted Mahesh Ojha, AVP Research at Hensex Securities.

Incorporated in 2013, Aegis Vopak Terminals (AVTL) is a company that owns and operates storage terminals for liquefied petroleum gas (LPG) and various liquid products. It provides safe storage and related infrastructure for products like petroleum, vegetable oils, lubricants, chemicals, and gases such as propane and butane.