Aegis Vopak Terminals Locked In Upper Circuit Post Listing At Discount

Shares of Aegis Vopak Terminals Ltd. debuted on the National Stock Exchange at Rs 220 apiece, a discount of 6.38% below the issue price of Rs 235. The stock was listed on the BSE at a similar discount.

However, the share price rose 10% over its listing price intraday to Rs 242, erasing losses. The stock is currently stuck in an upper circuit.

Aegis Vopak's IPO, which closed on May 28, was subscribed 2.09 times, with demand led by qualified institutional buyers. The Rs 2,800-crore offering consisted entirely of a fresh issue of equity shares with no offer-for-sale component.

Investors had bid for a minimum of 63 equity shares and in multiples of 63 thereafter. ICICI Securities, BNP Paribas, IIFL Capital Services, Jefferies India and HDFC Bank are the book-running lead managers to the issue.

As per the company's red herring prospectus, Aegis Vopak Terminals is India's largest third-party owner and operator of tank storage terminals for liquified petroleum gas and liquid products, based on storage capacity as of Dec. 31, 2024. The company operates a vast network of terminals with an aggregate storage capacity of approximately 1.50 million cubic meters for liquid products and 70,800 metric tonnes of static capacity for LPG.

Aegis Vopak Terminals claims to hold a leading position in the LPG storage sector in India, accounting for around 11.50% of the country’s total static LPG storage capacity. In the liquid products segment, it is the largest third-party tank storage company, contributing approximately 25.53% of India’s total third-party liquid storage capacity.

With a strategically diversified presence across five major ports on both the west and east coasts of India, Aegis Vopak Terminals plays a significant role in India’s import infrastructure, its red herring prospectus said. These terminals collectively handle about 23% of the country’s liquid imports and 61% of its total LPG imports.