Aegis Vopak's Shares Make Weak Debut At 6% Discount To Rs 220: Should You Buy, Hold Or Sell?
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Aegis Vopak Terminals IPO Listing: The IPO was moderately subscribed at 2.09 times, with strong demand from qualified institutional buyers (QIBs).
Aegis Vopak Terminals IPO Listing: Aegis Vopak Terminals Limited was listed on the BSE and NSE today, June 2, 2025, following its Rs 2,800 crore initial public offering (IPO). The shares debuted at Rs 220 on both exchanges, with a discount of 6.38 per cent.
After the listing, the shares of Ageis Vopak Terminals recovered slightly to Rs 228.40 apiece, with a drop of 2.47 per cent from the upper band of the issue price.
The IPO was moderately subscribed at 2.09 times, with strong demand from qualified institutional buyers (QIBs), while retail and high-net-worth individual (HNI) participation remained subdued. The offering was solely a fresh issue of 11.91 crore equity shares, priced in the range of Rs 223-Rs 235 per share.
Aegis Vopak Terminals is a leading player in the logistics and storage sector, specialising in handling liquid and gas chemicals through its strategically located terminals. The company operates as a joint venture between Aegis Logistics Ltd and the global tank storage company Royal Vopak. Its robust infrastructure and operational capabilities have positioned it to serve a wide range of industries, including chemicals, petrochemicals, and energy, with safe and reliable storage solutions.
advetisement
Aegis Vopak Terminals' Shares: Should You Buy, Sell Or Hold?
Most brokerage firms have given a 'subscribe' rating to the IPO, especially for the long term. However, they have also flagged several risks.
Giving a 'subscribe for long term' rating for the IPO, Bajaj Broking in its IPO note said, 'While the company has demonstrated a strong financial turnaround posting a net profit of Rs 86.54 crore in FY24 after a marginal loss in FY23, the valuation requires careful consideration."
Based on FY24 EPS of Rs 1 and a NAV of Rs 13.27, the IPO price band of Rs 223-Rs 235 appears expensive on traditional valuation metrics like price-to-earnings, especially as a meaningful P/E cannot be derived due to the company's recent shift to profitability, it said.
'While the company's strategic importance in India's LPG and liquid bulk infrastructure space justifies a premium to some extent, the pricing seems to factor in strong future growth expectations. Investors should view this IPO as a play on long-term infrastructure and energy logistics growth, but must weigh the premium valuation against the company's limited historical profitability and execution risks in upcoming capex projects," said Bajaj Broking.
Another brokerage firm BP Wealth has also granted 'Subscribe' rating to the IPO. 'The company has demonstrated stable financial performance over the last three financial years, aided by its annuity-like business model and long-term customer contracts. The company has managed debt levels, indicating strong financial flexibility to support its expansion plans under project GATI. The company's asset-heavy model and predictable cash flows from storage contracts provide visibility in earnings, making it well-positioned for future growth," it said in its IPO note.
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
About the Author
Varun Yadav
Location :
New Delhi, India, India
First Published:
June 02, 2025, 10:14 IST
News business » ipo Aegis Vopak's Shares Make Weak Debut At 6% Discount To Rs 220: Should You Buy, Hold Or Sell?
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