Aegis Vopak Terminals IPO Receives 2.2x Subscription On Day 3, Retail Quota Booked By 0.81x; Check GMP Today
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Unlisted shares of Aegis Vopak Terminals Ltd are trading at Rs 236 apiece in the grey market, which is a subdued 0.43% premium or GMP over the IPO price of Rs 235.
Aegis Vopak Terminals IPO Day 3: The initial public offering of Aegis Vopak Terminals Ltd has been be closed on Wednesday, May 28. Till 5:00 pm on the final day of bidding on Wednesday, the Rs 2,800-crore IPO received a 2.20 times subscription, garnering bids for 14,43,60,342 shares as against 6,55,31,915 shares on offer.
The retail and NII participation stood at 0.81 times and 0.59 times, respectively. Its qualified institutional buyer (QIB) category got a 3.47 times subscription, according to data from exchanges.
The IPO was opened for public subscription on Monday, May 26. It received a 27 per cent subscription on Day 1 and a 37 per cent subscription on Day 2.
The price band has been fixed in the range of Rs 223-235 apiece.
Aegis Vopak Terminals Ltd (AVTL), a joint venture between Aegis Logistics Limited and Royal Vopak, is India's leading third-party owner and operator of tank storage terminals for LPG and liquid products. It has presence over both East and West coasts of India.
Aegis Vopak Terminals IPO GMP Today
According to market observers, unlisted shares of Aegis Vopak Terminals Ltd are currently trading at Rs 236 apiece in the grey market, which is a subdued 0.43 per cent premium or GMP over the IPO price of Rs 235. It indicates mild listing gains for investors on June 2, the tentative listing date.
The shares will be listed on both BSE and NSE.
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.
The issue is valued at a P/E of 198.0x on the upper price band based on FY25 earnings. 'Therefore, we recommend a SUBSCRIBE rating for the issue," BP Wealth stated.
Brokerage firm Ventura also granted 'Subscribe' rating to the IPO. It said, 'At the upper price band of INR 235, the IPO is priced at a TTM P/E of 187.7x. While this valuation appears steep, the company's ongoing LPG capacity expansion and planned future ventures into green ammonia present substantial long-term growth potential. We therefore recommend 'subscribe' to this IPO."
Granting 'subscribe for long term' rating to the IPO, Aditya Birla Capital in its note said, 'The company plans to raise Rs 2,800 crore with objective of loan repayment of Rs 2,016 crore and balance for funding expansion capex. At upper price-band of Rs 235, the issue is priced at a ~57x FY25 EV/EBITDA. The aggressive expansion and strong parentage instil confidence in the company, we recommend 'subscribe for long term' to the issue."
Risks
According to brokerage firms, the IPO faces the following risks: 1) Slowdown in India's oil & gas industry; 2) Damage to assets owing to natural calamities or any other reasons; 3) Non-compliance of safety or legal regulations applicable to the business; and 4) Promoters are involved in similar businesses.
Aegis Vopak Terminals has raised Rs 1,260 crore from anchor investors, ahead of its initial share-sale that opens for public subscription. The company is valued at around Rs 26,000 crore at the upper end of the price band.
The IPO is entirely a fresh issue of equity shares worth Rs 2,800 crore with no offer-for-sale (OFS) component, according to the red herring prospectus (RHP). Previously, the IPO was planned to raise Rs 3,500 crore.
Proceeds worth Rs 2,016 crore will be used for payment of debt, Rs 671.30 crore to fund capital expenditure for the acquisition of a cryogenic LPG terminal at Mangalore and the remaining amount will be allocated for general corporate purposes.
Aegis Vopak Terminals owns and operates storage tank terminals across India. These terminals provide secure storage facilities for liquids like petroleum, vegetable oil, lubricants, chemicals, and gases such as LPG, propane, and butane.
The strategic location of the company's terminals near key ports, closer to major shipping routes, offers competitive advantages, including faster evacuation through pipelines, rail, and road, lower delivery costs, and improved delivery times.
The terminalling industry relies heavily on the strategic location of storage terminals. Terminals near major shipping routes and well-connected ports gain a competitive edge by reducing last-mile delivery costs and ensuring faster delivery times.
ICICI Securities, BNP Paribas, IIFL Capital Services, Jefferies India and HDFC Bank are the book running lead managers to the issue.
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tags :
IPO
Location :
New Delhi, India, India
First Published:
May 28, 2025, 10:51 IST
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