Aegis Vopak Terminals Set for Strong IPO Launch Amid Robust Anchor Investment

Storage solutions provider Aegis Vopak Terminals is preparing for a significant initial public offering (IPO), set to open on May 26, 2025, after successfully raising Rs 1,260 crore from 32 anchor investors. With a compelling price band of Rs 223 to Rs 235 per equity share, including a premium of Rs 225 per share with a face value of Rs 10, investor interest is keenly focused on this upcoming offering.

Anchor Investment Breakdown

In the lead-up to the IPO, Aegis Vopak has witnessed impressive participation from various global and domestic funds. Notable anchor investors include major players such as:

• Goldman Sachs
• Nomura Trust & Banking Co
• Aberdeen Standard SICAV I – Indian Equity Fund (Scotland-based)
• TOCU Europe III S.A R.L

Among the domestic mutual funds, six were instrumental in securing over 29.56% of the anchor quota, translating to approximately 1.58 crore equity shares. Key contributors include:

• HDFC Mutual Fund with three schemes participating
• Motilal Oswal Mutual Fund with seven schemes
• Bandhan Mutual Fund
• ITI Mutual Fund

The Structure of the IPO

The IPO comprises a fresh issue of 11.91 crore shares, with an impressive aggregate value of up to Rs 2,800 crore. Notably, there is no offer-for-sale component involved in this offering, which allows the company to raise funds entirely from newly issued shares.

Investment Details and Minimum Application

For retail investors looking to participate, the minimum application comprises one lot, which includes 63 shares. At the upper end of the price band, this equates to an investment of Rs 14,805. Meanwhile, for small High Net-worth Individuals (HNIs), the minimum application requires purchasing 14 lots, amounting to Rs 2.07 lakh. This structured approach makes the offering accessible to a variety of investors and reinforces the company’s commitment to broadening its investor base.

Use of Funds: Strategic Financial Planning

Aegis Vopak Terminals has outlined several pivotal uses for the IPO proceeds:

• Repayment or prepayment of certain borrowings
• Funding the acquisition of a cryogenic LPG terminal located in Mangalore
• General corporate purposes to support future growth initiatives

This strategic allocation of funds suggests a focused approach to enhance operational capacity while maintaining fiscal prudence.

Financial Performance: A Solid Foundation

As the company gears up for its IPO, its financial performance paints a promising picture. In FY24, Aegis Vopak reported:

• Total revenue of Rs 570.12 crore
• Net profit of Rs 86.54 crore

For the nine months ending December 2024, the profit after tax (PAT) amounted to Rs 85.89 crore, further highlighting consistent performance and potential for future growth.

Key Players in the IPO Process

Handling the IPO process are renowned book-running lead managers, including:

• ICICI Securities
• BNP Paribas
• IIFL Securities
• Jefferies India
• HDFC Bank

With Link Intime serving as the registrar, these experienced firms will guide Aegis Vopak through the intricacies of this public offering.

Conclusion: A Promising Opportunity for Investors

With a strong foothold in the storage solutions sector and a well-structured IPO plan, Aegis Vopak Terminals stands to attract considerable investor interest. The combination of significant anchor investment, a strategic use of funds, and solid financial performance positions the company favorably as it prepares to officially list on the stock market. Investors should keep a close eye on this IPO, as it signals not only a robust investment opportunity but also the potential for growth in the expanding logistics and storage sector in India.