Aegis Vopak Terminal Sets Price Band For Rs 2,800-Crore IPO

Aegis Vopak Terminals Ltd., a subsidiary of Aegis Logistics Ltd., has announced a price band of Rs 223 to Rs 235 per share for its Rs 2,800-crore initial public offering on Wednesday.

The initial share-sale will open for public subscription on May 26 and conclude on May 28. The bidding for anchor investors will open for a day on May 23, the company said.

The IPO is entirely a fresh issue of equity shares worth Rs 2,800 crore with no offer-for-sale component, according to the red herring prospectus. Previously, the IPO was planned to raise Rs 3,500 crore.

The company received approval from the Securities and Exchange Board of India to raise funds through an IPO on April 15.

It announced that 75% of the issue size has been reserved for qualified institutional buyers, 35% for non-institutional buyers and the remaining 10% for retail investors.

Investors can bid for a minimum of 63 equity shares and in multiples of 63 thereafter. As of June 2024, the company had a total borrowings of Rs 2,584 crore on its books.

ICICI Securities, BNP Paribas, IIFL Capital Services, Jefferies India and HDFC Bank are the book running lead managers to the issue.

Aegis Vopak Terminals was established as a joint venture between Aegis Logistics Ltd. and Vopak India BV, a part of Netherlands-based Royal Vopak.

The company owns and operates storage tank terminals across India. These terminals provide secure storage facilities for liquids like petroleum, vegetable oil, lubricants, chemicals, and gases such as LPG, propane, and butane.

The strategic location of the company's terminals near key ports, closer to major shipping routes, offers competitive advantages, including faster evacuation through pipelines, rail, and road, lower delivery costs, and improved delivery times.

The terminalling industry relies heavily on the strategic location of storage terminals. Terminals near major shipping routes and well-connected ports gain a competitive edge by reducing last-mile delivery costs and ensuring faster delivery times.

The proceeds from the IPO will be used for repayment of outstanding borrowings, funding capital expenditure towards contracted acquisition of the cryogenic LPG terminal at Mangalore and general corporate purposes.

Proceeds worth Rs 2,016 crore will be used for payment of debt, Rs 671.30 crore to fund capital expenditure for the acquisition of a cryogenic LPG terminal at Mangalore and the remaining amount will be allocated for general corporate purposes.

(With inputs from PTI).