Aegis Vopak Terminals listed on BSE & NSE at ₹220 price at 6% discount to the issue price

The leading tank storage and handling services provider, Aegis Vopak Terminals Limited, has made a weak debut on both the BSE and NSE platforms. After closing its IPO bidding between May 26-28, 2025, the company made its stock market debut on June 2, 2025, at a 6% discount to the issue price. This book-building IPO raised ₹2,800 crore, marking a significant milestone for India's storage infrastructure sector. The company aims to strengthen its market position, reduce its debt burden, and fund expansion plans, including the acquisition of a cryogenic LPG terminal at Mangalore.

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Aegis Vopak Terminals IPO Listing Details

Aegis Vopak Terminals Limited launched its IPO through the book-building process in the price band of ₹223-235 per share. The minimum investment required was 63 shares costing ₹14,805. The IPO received a moderate response, with an overall subscription of 2.20 times. The QIB segment had a subscription of 3.47 times, the retail segment 0.81 times, and the NII segment 0.59 times by the final day of bidding.

Listing Price:  The Aegis Vopak Terminals IPO share price opened at ₹220 on both NSE and BSE on June 2, 2025, marking a discount of 6.38% to the IPO price of ₹235, with the stock trading below the grey market premium of -0.43%.

Investor Sentiment: Aegis Vopak Terminals holds a strong position as India's largest third-party owner and operator of tank storage terminals for LPG and liquid products, managing around 25.53% of India's third-party liquid storage capacities.

First-Day Trading Performance Outlook

Aegis Vopak Terminals commenced trading on both BSE and NSE on June 2, 2025, witnessing a weak stock market debut. The company opened at ₹220, representing a 6.38% discount to its IPO price, with shares later trading at ₹227.15, showing some recovery. The company entered the market with a total storage capacity of 1.50 million cubic meters for liquid products and 70,800 MT for LPG across 18 terminals. During the market debut, investors and analysts closely monitored the stock's performance, considering the infrastructure sector's growth potential and the company's strategic expansion plans.

Market Sentiment and Analysis

Aegis Vopak Terminals Limited, established in 2013, operates as a joint venture between Aegis Logistics and Vopak India BV (part of Royal Vopak, Netherlands). The company provides tank storage and handling services for various liquids and LPG gases, operating across five major ports in India, including Haldia, Kochi, Mangalore, Pipavav, and Kandla, with expertise in handling over 30 types of chemicals and more than 10 types of edible and non-edible oils.

Market Sentiment: Investors actively evaluate the company's infrastructure positioning, financial performance turnaround, and growth prospects in India's expanding storage and logistics market.

Performance Indicators: Aegis Vopak Terminals demonstrated strong financial recovery with revenue of ₹154 crore in FY2024 compared to ₹114 crore in the previous year, and net profit rising to ₹25.78 crore from ₹7.32 crore.

Listing Outlook: Despite the weak listing with a 6.38 % discount, the company's strategic market position and financial turnaround story position it well for long-term growth in India's expanding storage infrastructure market.

Growth Drivers and Challenges

Aegis Vopak Terminals presents significant growth potential with its leading market position in tank storage, strategic port locations, and strong financial recovery. The rising demand for storage infrastructure and India's growing petrochemical and chemical industries support its expansion plans. However, the company faces challenges including high debt levels, capital-intensive operations, and the need for continued investment in infrastructure development and technology upgrades.

Growth Drivers:

• Market Leadership: India's largest third-party owner and operator of tank storage terminals, managing 25.53% of liquid storage capacities
• Strategic Locations: Operations across five major ports with comprehensive storage infrastructure
• Financial Turnaround: Strong revenue growth and improved profitability with ROE of 8.68% and ROCE of 8.39%
• Experienced Partnership: Joint venture with Royal Vopak, a leading global tank storage company
• Diversified Portfolio: Handles over 30 types of chemicals and various liquid products, including petroleum and vegetable oils
   

Challenges:

• High Debt Burden: Significant borrowings of ₹2,485.75 crore with a debt-to-equity ratio of 2.59, requiring careful management
• Capital Intensive: Requires continuous investment for infrastructure expansion and maintenance
• Market Response: Moderate IPO subscription, indicating investor caution about valuation
• Operational Complexity: Managing a diverse product portfolio across multiple locations requires specialised expertise

Utilisation of IPO Proceeds

Aegis Vopak Terminals plans to utilise the ₹2,800 crore raised from the fresh issue to strengthen its financial position and support strategic growth initiatives.

• Debt Repayment: A significant portion will be used to repay or prepay existing borrowings, helping reduce interest costs and improve financial flexibility.
• Capital Expenditure: Funding towards the contracted acquisition of the cryogenic LPG terminal at Mangalore, enhancing storage capacity and capabilities.
• General Corporate Purposes: Remaining funds allocated for general business needs, including operational expenses and strategic growth initiatives.
   

Financial Performance of Leela Hotels

Aegis Vopak Terminals has shown strong financial recovery, driven by improved operational efficiency and growing demand for storage services:

• Revenue: ₹154 crore for FY2024, showing significant growth from ₹114 crore in the previous year, reflecting increased utilisation and demand for storage services.
• Net Profit: ₹25.78 crore in FY2024, a substantial improvement from ₹7.32 crore in the previous year, demonstrating enhanced operational efficiency and cost management.
• Net Worth: ₹2,037.61 crore as of December 2024, showing a strong financial foundation despite high borrowing levels for infrastructure development.

Aegis Vopak Terminals offers a compelling investment opportunity with its market-leading position in tank storage infrastructure, strategic port locations, and strong financial recovery. While it faces challenges like high debt levels and capital-intensive operations, its established market presence and partnership with global leader Royal Vopak position it well for capitalising on India's growing storage infrastructure demand.

The IPO presents a chance for long-term investors to participate in a recovering infrastructure company with significant growth potential in India's expanding petrochemical and storage sectors, despite the weak listing performance.