Aegis Vopak Terminals to open IPO on May 26, price band announced; check all details

Aegis Vopak Terminals is set to launch its Initial Public Offering (IPO) with a price band of Rs 223-235 per equity share. The IPO will be open for subscription from May 26 to May 28, with anchor investor bidding commencing on May 23. This revised offering comes with an issue size of Rs 2,800 crore, down from the initially proposed Rs 3,500 crore. The entire amount is a fresh issue, primarily aimed at repaying debts and funding capital expenditure, which includes acquiring the cryogenic LPG terminal at Mangalore.

The basis of allotment is scheduled for May 29, with refunds and credit of equity shares to follow on May 30. Aegis Vopak's shares are expected to be listed on stock exchanges on June 2. Managed by ICICI Securities, BNP Paribas, IIFL Capital, Jefferies India, and HDFC Bank, the IPO represents a significant opportunity for investors. The offering is anticipated to attract various investor categories due to its structured approach and financial backing.

Aegis Vopak Terminals, which operates various storage and handling facilities, reported a revenue of Rs 154.02 crore for the financial year 2023–24, an increase from Rs 114.37 crore the previous year. The company's net profit also rose significantly to Rs 25.78 crore, compared to Rs 7.32 crore. As of September 2024, the company's total outstanding borrowings stood at Rs 2,546.68 crore, signifying a strategic need to manage debt through the IPO proceeds.

The company's infrastructure spans key Indian ports, including Haldia, Kochi, Mangalore, Pipavav, and Kandla, with facilities for the storage and handling of chemicals, oils, petroleum products, LPG, and other gases. This extensive network supports both domestic and international trade, bolstering its strategic importance in the industry.

Aegis Vopak owns and operates two LPG storage terminals and sixteen liquid storage terminals, with a combined liquid storage capacity of approximately 1.50 million cubic meters and 70,800 metric tonnes of static LPG storage capacity. The Mangalore terminal, a key asset, has a total liquid storage capacity of 119,152 cubic meters, serving various industries in the Karnataka hinterland.

The company aims to leverage the IPO proceeds not only to reduce debt but also to expand and improve its storage capacity, ensuring long-term growth and stability. With a focus on financial strengthening and operational expansion, the IPO offers a promising investment opportunity.

Key dates to note include the IPO open and close dates, the basis of allotment, refunds initiation, the credit of shares, and the listing date, marking significant milestones in the issuance process.