The Aegis Vopak Terminals IPO opened on May 26, 2025, and is set to close on May 28, 2025. The IPO aims to raise ₹2,800 crore through a fresh issue of shares. The price band is fixed between ₹223 and ₹235 per share, with a minimum lot size of 63 shares.
Subscription Status
On Day 2, May 27, 2025, the IPO was subscribed 0.27 times as of 10:05 AM. * Qualified Institutional Buyers (QIBs): 0.41 times * Non-Institutional Investors (NIIs): 0.03 times * Retail Investors: 0.21 times
This indicates a slow start compared to other IPOs. On the first day, the IPO was subscribed 26%.
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Aegis Vopak Terminals IPO is around ₹11 to ₹15, according to various sources. This suggests a listing gain of approximately 4.68%, with an expected listing price of around ₹246 per share, based on the upper price band of ₹235. However, it is important to note that GMP is speculative and not an official indicator of the listing price.
Utilization of Funds
Aegis Vopak Terminals plans to use the net proceeds from the IPO for the following purposes:
Business Overview
Aegis Vopak Terminals is recognized as India's largest third-party owner and operator of tank storage terminals for liquefied petroleum gas (LPG) and liquid products. As of December 31, 2024, the company managed an aggregate storage capacity of approximately 1.50 million cubic meters for liquid products and 70,800 metric tonnes of static capacity for LPG. This accounts for approximately 11.50% of India's total static LPG storage capacity and about 25.53% of the nation's third-party liquid storage capacity. The company owns and operates storage terminals across 6 Indian ports.
Financial Performance
In the nine months ending December 2024 (9MFY25), Aegis Vopak Terminals reported a revenue of ₹464 crore, a 24% increase year-over-year. The company's EBITDA rose by 38% to ₹354 crore, resulting in an EBITDA margin of 74%. Net profit stood at ₹86 crore, with a net margin of 19% and an EPS of 90 paise.
Concerns
Some analysts believe the IPO is aggressively priced. Factoring in 50% YoY growth with ₹160 crore interest cost savings, FY26E EPS is estimated at approximately ₹4, translating into a PE multiple of 59x. This is seen as very steep for 11% expected RoE, when parent Aegis, involved in similar line of business, is trading at a PE multiple of 40x with 15% RoE.
Analyst Recommendations
Ventura Securities has assigned a "subscribe" tag to the IPO, citing the company's ongoing LPG capacity expansion and potential ventures into green ammonia as substantial long-term growth opportunities. Gaurav Garg of Lemonn Markets Desk suggests that investors with a moderate to high-risk appetite and a long-term horizon should consider subscribing. SBI Securities' analysts recommend that long-term investors with a high-risk appetite may consider subscribing to the issue.
Key Dates
Should You Bet?
The decision to invest in the Aegis Vopak Terminals IPO depends on individual risk appetite and investment horizon. The company has strong fundamentals and growth plans, but the valuation appears stretched. Investors should consider the potential risks and rewards before making a decision.
