Aegis Vopak Terminals IPO

About Aegis Vopak Terminals IPO

The IPO of Aegis Vopak Terminals Ltd consists entirely of a fresh issue that aggregates up to ₹2800 crore. It’s a 100% book-built issue. This IPO has no offer for sale. The IPO opens on May 26, 2025 and ends on May 28, 2025. The shares will be allotted on May 29, 2025, they will be credited to the investor’s account on May 30, 2025 and refunds will be initiated on May 30, 2025.

Objectives of Aegis Vopak Terminals IPO

The company plans to utilise the IPO proceeds for:

• Repayment or prepayment of all or a portion of certain outstanding borrowings availed by the company
• Funding capital expenditure towards contracted acquisition of the cryogenic LPG terminal at Mangalore
• General corporate purposes

Industry Outlook

Indian refineries have been undertaking capital expenditure to expand capacities or set up greenfield plants. The refinery capacity is expected to increase to 290-300 MMTPA by fiscal 2029 from approximately 260 MMTPA in fiscal 2024. LPG imports are also expected to contribute to more than 60% of the overall LPG demand in the country during fiscal 2024-29 period, growing with a CAGR of 6-8%.

Company Information

Aegis Vopak Terminals Ltd is 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 June 30, 2024. The company owns and operates a network of storage tank terminals having an aggregate storage capacity of approximately 1.50 million cubic meters for liquid products and 70,800 metric tons (MT) of static capacity for LPG as of June 30, 2024.

Risks of Aegis Vopak Terminals IPO

• Aegis Vopak derived 42.07%, 44.56%, 43.94% and 48.85% of its revenue from its top 10 customers in the last in Fiscal 2023 and 2024 and in the three months ended June 30, 2023 and 2024, respectively. Any deterioration of their business, substantial reduction in their dealings with the company or a loss of any of these customers could have an adverse effect on its business, results of operations, financial condition and cash flows.

• The majority of the company’s terminals are situated across the west coast of India. It generated 91.61%, 92.28%, 91.66% and 93.97% revenues in Fiscal 2023 and 2024 and in the three months ended June 30, 2023 and 2024, respectively. Any adverse developments affecting its operations in these regions could have an adverse impact on its business, financial condition, results of operations and cash flows.

• The company’s operations substantially depend on the activity and expenditure levels in the oil and gas sector. It generated 36.36%, 37.81%, 37.62% and 42.47% of its revenues from customers in the oil and gas sector. Any adverse developments in the sector could have an impact on its results of operations, financial condition and cash flows.

IPO Registrar and Book Running Lead Managers

Link Intime India Pvt Ltd is the registrar of Aegis Vopak Terminals Ltd IPO. The book running lead managers are:

• ICICI Securities Ltd
• BNP Paribas
• IIFL Capital Services Ltd
• Jefferies India Private Ltd
• HDFC Bank Ltd

Business Model

The company owns and operates a network of storage tank terminals. It offers secure storage facilities and associated infrastructure for liquids such as petroleum, vegetable oil, lubricants and various categories of chemicals and gases such as LPG.

Company Growth Trajectory

The company’s PAT margin jumped from (0.02%) in FY 23 to 15.18% in FY 24. Its EBITDA margin jumped from 65.16% in FY 23 to 71.19% in FY 24.

Market Position

In terms of storage of liquid products, Aegis Vopak is the largest third-party tank storage company in India, contributing to approximately 26.64% of India’s third-party liquid storage capacity as of June 30, 2024. As of June 30, 2024, the company had a diversified network of terminals spread strategically across five key ports in operation on the West and East coast of India.

How to Check Allotment Status of Aegis Vopak Terminals IPO?

You can check the allotment status of this IPO through the BSE website and the registrar’s portal. To check status on the BSE website:

• Visit the BSE website
• Click on ‘Investor Services’ and choose ‘Application Status Check’
• Choose the issue type — Equity or Debt
• Select the Issue Name from the drop-down.
• Enter your application number or PAN number
• Check the box that says “I’m not a Robot” and click on “Search” to know the allotment status

To know the allotment status on the registrar's portal:

• Visit the website of Link Intime India Private Ltd
• Choose ‘Public Issues’ from Investor Services dropdown
• Choose the name of the company from ‘Select Company’ dropdown
• Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
• Click on Submit to check the status

How to Apply for Aegis Vopak Terminals Ltd IPO?

To apply for this IPO:

• Step 1: Log in to your Kotak Neo Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.