Aegis Vopak Terminals IPO: From financials to key risks, 10 key things to know from RHP
Aegis Vopak Terminals IPO: The initial public offering (IPO) of chemicals and oil storage and logistics solutions provider Aegis Vopak Terminals is set to open for subscription on Monday, May 26 and will remain so until Wednesday, May 28.
The third-party owner and operator of tank storage terminals aims to raise ₹ 2,800 crore through a fresh issue of 11.91 crore shares. The company intends to use the net proceeds to repay or prepay all or a portion of certain outstanding borrowings and to fund capital expenditure towards the contracted acquisition of the cryogenic LPG terminal at Mangalore. Some portion of the net proceeds will be used for general corporate purposes.
The price band of Aegis Vopak Terminals IPO has been set at ₹ 223 to ₹ 235 per share. The minimum lot size for an application is 63.
The company is expected to finalise share allotment on Thursday, May 29, and the stock could debut on the BSE and the NSE on Mon, June 2.
ICICI Securities Limited, BNP Paribas, IIFL Capital Services, Jefferies India and HDFC Bank are the book-running lead managers of the mainboard IPO, while MUFG Intime India Private Limited (formerly known as Link Intime India Private Limited) is the registrar for the issue.
1. Aegis Vopak business: The company claims to be the largest Indian third-party owner and operator of tank storage terminals for liquified petroleum gas(LPG) and liquid products in terms of storage capacity, as of December 31, 2024.
2. Aegis Vopak Terminals' promoters: Aegis Vopak Terminals was established as a joint venture between Aegis Logistics Limited and Vopak India BV.
While Aegis is a listed Indian conglomerate providing sourcing, storage, distribution, storage and third-party logistics services in the oil, gas, and chemicals sector, Vopak India BV, is part of Royal Vopak, a listed company headquartered in the Netherlands and is among the world's leading tank storage companies, with an experience of over 400 years in the storageindustry.
3. Aegis Vopak Terminals' financial performance: The company's revenue from operations was ₹ 3,533.32 million in FY23, and ₹ 5,617.61 million in FY24, and ₹ 3,754.19 million and ₹ 4,641.81 million in the nine months ended December 31, 2023 and December 31, 2024, respectively.
Its EBITDA was ₹ 2,319.61 million in FY23, ₹ 4,058.97 million in FY24, and ₹ 2,569.19 million and ₹ 3,533.60 million in the nine months ended December 31, 2023 and December 31, 2024, respectively, and EBITDA margin was 65.16 per cent in FY23, 71.19 per cent in FY24, and 67.49 per cent and 74.21 per cent in the nine months ended December 31, 2023 and 2024, respectively.
4. Industry growth outlook: The company in its RHP highlighted a CRISIL report according to which India is poised to play a pivotal role in the global energy transition through various strategic initiatives.
"One such initiative is the establishment of a manufacturing hub for green hydrogen and its derivatives, such as green ammonia and green methanol. As these new energy sources gain traction, the demand for specialised storage facilities will increase significantly," it said.
5. Aegis Vopak Terminals has strategically located terminals across the Indian coast: According to the RHP, even though majority of the company's terminals are situated across the west coast of India, Aegis Vopak has a diversified network of terminals spread strategically across five key ports in operation on the West and East coast of India as of December 31, 2024.
These key ports together, handle approximately 23 per cent of liquid and 61 per cent of total LPG import volumes in India.
"Our two gas storage terminals, as of December 31, 2024, are distributed across two ports, Kandla and Pipavav in Gujarat, and store various gases such as LPG (including propane and butane) imported by our customers. Owing to their strategic location, Kandla and Pipavav ports together handled 3.67 MMT of LPG, representing 20.10 per cent of India's LPG imports in Fiscal 2024," said the company.
6. Customer base: As of December 31, 2024, the company had a diversified customer base of over 400 customers, including major national oil marketing companies (OMCs).
"We have successfully diversified our customer base to include a wide array of industries and sectors, including traders, end users, manufacturers, and fuel marketing companies from both private and public sectors, as well as local and international businesses," said the company.
7. Top 10 customers contribute major chunk of revenue: The company derived 42.07 per cent, 44.56 per cent, 47.20 per cent and 44.76 per cent of its revenue from our top 10 customers in the last in FY23 and FY24 and in the nine months ended December 31, 2023 and 2024, respectively.
"Any deterioration of their business, substantial reduction in their dealings with us or a loss of any of these customers could have an adverse effect on our business, results of operations, financial condition and cash flows," said the company.
8. Upcoming terminals: According to the company's RHP, its promoter Aegis Logistics is in the process of developing an ammonia storage facility situated in Pipavav, which is slated to become operational by FY26.
"Once completed, the ammonia storage facility is intended to be transferred to our Company. The storage solutions will meet growing market demand and reinforce our commitment to supporting the transition to more sustainable and efficient industrial practices with respect to product handling at the terminals," said the company.
9. Subsidiaries: Konkan Storage Systems (Kochi) Private Limited and CRL Terminals Private Limited are the two subsidiaries of the company.
10. Group companies: (i) Aegis Gas (LPG) Private Limited, (ii) Hindustan Aegis LPG Limited, (iii) Sealord Containers Limited, and (iv) Vopak India Private Limited are the group companies.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
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