Aegis Vopak IPO Remains Undersubscribed On Day Two; GMP Down

The initial public offering of Aegis Vopak Terminals Ltd. continued to see an underwhelming response, with subscription at 0.35 times or 35% on its second day. The offering was subscribed 26% on its first day of bidding.

The grey market premium of the Aegis Vopak Terminals IPO has dropped to Rs 4 from Rs 11 earlier, according to InvestorGain.

The company has set a price band of Rs 223 to Rs 235 per share for its Rs 2,800-crore initial public offering. The proceeds from this issue will be utilised to repay outstanding borrowings, fund capital expenditure for acquiring the cryogenic LPG terminal at Mangalore, and cover general corporate expenses.

• Issue opens: May 26.

• Issue closes: May 28.

• Issue price: Rs 223–235.

• Fresh issue: Rs 2,800 crore.

• Total issue size: Rs 2,800 crore.

• Lot size: Minimum 63 shares, and then in multiples thereof.

Aegis Vopak Terminals is recognised as India's largest third-party owner and operator of tank storage terminals for liquefied petroleum gas and liquid products, based on storage capacity as of Dec. 31, 2024, the company said in its red herring prospectus.

The company manages an extensive network of terminals, boasting an aggregate storage capacity of around 1.50 million cubic meters for liquid products and 70,800 metric tonnes of static capacity for LPG.

Aegis Vopak Terminals represents approximately 11.50% of the nation’s total static LPG storage capacity. In the liquid products segment, it stands as the largest third-party tank storage company, contributing about 25.53% of India’s total third-party liquid storage capacity.

The IPO has been subscribed 0.35 times or 35% as of 5:30 p.m. on Tuesday.

• Qualified institutional buyers: 0.43 times.

• Non-institutional investors: 0.12 times.

• Retail investors: 0.44 times.

The grey market premium of the Aegis Vopak Terminals IPO has dropped to Rs 4 from Rs 11 earlier, according to InvestorGain. This indicates the stock listing at Rs 239 apiece, a 1.7% premium over the upper price band.

It should be noted that GMP or grey market price is not an official price quote for the stock and is based on speculation.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.