India’s infrastructure sector is witnessing an inflection point as the country strives to balance industrial growth with energy security and environmental sustainability. At the heart of this transition is logistics — particularly liquid and gas logistics — which ensure safe, efficient movement of fuels, chemicals, and industrial products across the nation’s ports. In this context, Aegis Vopak IPO review uncovers positives, negatives, structure and growth drivers of the company.
As a joint venture between India’s leading LPG handler Aegis Logistics and Dutch global tank storage major Royal Vopak, AVTL offers investors rare access to a niche, highly regulated, and underpenetrated segment of Indian infrastructure — third-party tank storage for LPG and liquids. Lets’s explore what Aegis Vopak IPO review uncovers.
Table of Contents
IPO Details: Structure, Timelines, and Pricing
✅IPO Open and Close Dates: 26 May – 28 May 2025
✅Listing Date: 2 June 2025
✅Price Band: INR 223 to INR 235 per share
✅Lot Size: 63 shares per lot, minimum investment INR 14,805
✅Fresh Issue: INR 2,800 crore
✅Retail Allocation: 10%
✅Listing Exchanges: BSE and NSE
The entire issue is a fresh offer, meaning the capital will go directly into the business — a strong positive signal that underlines promoter confidence.
Aegis Vopak IPO Review: Use of IPO Proceeds
The IPO proceeds will be strategically deployed as follows:
- INR 2,015.95 crore for repayment/prepayment of outstanding borrowings
- INR 671.3 crore for capex towards a new cryogenic LPG terminal at Mangalore
- Remainder for general corporate purposes
The dual focus on deleveraging and expansion is a prudent strategy. Reduced debt enhances cash flows, while capacity addition addresses surging demand for LPG and specialty chemical storage.
Who is Aegis Vopak Terminals?
Aegis Vopak Terminals is India’s largest third-party owner and operator of tank terminals for liquids and LPG by storage capacity. As of 31 December 2024, it operates:
- 1.68 million CBM of liquid storage capacity
- 70,800 MT of LPG static capacity
- 20 terminals across 6 major Indian ports
- Handles 25.53% of India’s third-party liquid storage capacity and 11.5% of LPG static capacity
The company’s ‘Necklace of Terminals’ strategy ensures geographical spread and logistics efficiency — spanning Kandla, Pipavav, Kochi, Haldia, Mangalore, and JNPA (Mumbai). These ports collectively handle 61% of India’s LPG imports and 23% of liquid imports.
Business Model: Engineered for Stickiness
AVTL’s business model is grounded in high-barrier, capital-intensive infrastructure services that create long-term customer relationships and predictable cash flows.
1. Gas Terminal Division
- Products: Liquefied Petroleum Gas (LPG) including propane and butane.
- Infrastructure: High-capacity cryogenic and pressurized storage tanks strategically located at ports such as Kandla and Pipavav.
- Market Penetration: In FY24, AVTL handled a commanding 61% of India’s LPG imports, reinforcing its market dominance.
- Revenue Model: Volume-linked throughput fees under long-term take-or-pay and throughput-based contracts primarily with oil marketing companies and global energy players.
- Operational Metrics: Industry-leading turnaround times and safety records supported by automated systems and best-in-class compliance standards.
2. Liquid Terminal Division
- Products: Petroleum derivatives, edible oils, base oils, lubricants, and a wide spectrum of industrial and specialty chemicals.
- Network: Comprises 18 terminals across six major ports, with a total static capacity of approximately 1.5 million CBM.
- Clientele: Over 120 clients including FMCG giants, agrochemical leaders, and large multinational corporations.
- Revenue Drivers: Storage rental, throughput fees, blending, drumming, and related logistics services.
Aegis Vopak IPO Review: Backed by Industry Titans
AVTL is promoted by two logistics powerhouses:
Aegis Logistics (India)
- Handles over 20% of India’s LPG imports
- 50+ years of experience
- Listed player with integrated operations from import to distribution
- Deep client relationships with public and private oil companies
Royal Vopak (Netherlands)
- 400+ years of global experience
- Operates 77 terminals across 23 countries
- Handles 35.4 million CBM of global storage capacity
- Strong ESG commitment with AAA MSCI ESG rating
Their collective expertise, governance frameworks, and long-standing customer networks lend AVTL strong operational credibility and financial muscle.
Industry Outlook: Secular Momentum
- LPG Demand CAGR: Estimated 5.5% CAGR until 2030, driven by urbanization and clean energy mandates.
- Petrochemical & Chemical Storage CAGR: 6–8% as India becomes a global chemicals manufacturing hub.
- Policy Environment: Strong support via 100% FDI allowance in storage infra, Gati Shakti logistics master plan, and Make-in-India chemical clusters.
- Green Transition: Future potential in handling hydrogen, methanol, and green ammonia adds a strategic ESG growth layer.
Aegis Vopak IPO Review: Financial Performance
| FY 2023 | FY 2024 | 9M FY 2025 | |
| Revenue | 353.33 | 561.76 | 464.18 |
| Expenses | 353.39 | 449.10 | 362.16 |
| Net income | (0.08) | 86.54 | 85.89 |
| Margin (%) | (0.02) | 15.41 | 18.50 |
| RONW (%) | (0.01) | 7.51 | 4.22 |
| ROCE (%) | 5.26 | 8.39 | 9.58 |
| EBITDA (%) | 65.16 | 71.19 | 74.21 |
| Debt/Equity | 1.83 | 2.59 | 1.32 |
This performance marks more than 58% YoY growth in revenue in FY24 and a PAT margin of over 15%, signaling strong operating leverage at play.
Growth Levers: From LPG to Ammonia
- LPG demand in India to reach 36–37 MMTPA by FY2029, growing at 3–4% CAGR
- Import dependency > 60%, ensuring strong demand for port-based storage
- Planned expansions to increase LPG capacity by 1,30,000 MT to reach 2,00,800 MT by FY26
- New ammonia storage at Pipavav planned — capitalizing on India’s Green Hydrogen push
- New VLGC (Very Large Gas Carrier)-compliant berth and rail gantry at Pipavav
AVTL’s Project GATI (Gateway Access to India) is a long-term bet on green energy logistics — an early mover advantage in a sector that will likely dominate future supply chains.
Strategic Infrastructure Moats
- Geographic Footprint: Located across Kandla, Pipavav, Mumbai, Haldia, and Kochi, these terminals are adjacent to high-demand industrial clusters.
- Multimodal Access: Seamless pipeline connectivity, dedicated rail sidings, and road linkages optimize last-mile delivery.
- Utilization Metrics: 84.75x throughput turns per annum on average, indicating rapid inventory turnover and efficiency.
- Technological Investments: Over INR 3,235 crore invested in FY23 in automation, safety systems, and capacity upgrades.
- High Switching Costs: Customers are deeply integrated into AVTL’s logistical network, creating long-term lock-in.
Peer Comparison: Pricey but Niche
| P/E (x) | EPS | RONW (%) | Revenue (INR Cr) | |
| Aegis Vopak | 268.51 | 0.88 | 7.51% | 561.76 |
| Adani Ports | 37.48x | 37.55 | 15.32% | 26,710.56 |
| JSW Infra | 49.02x | 5.88 | 14.40% | 3,762.89 |
At first glance, Aegis Vopak’s P/E appears lofty, but investors should note that current earnings reflect only recently ramped-up operations post-acquisition. The full benefit of new terminals and capacity additions will likely emerge in the coming quarters.
Risk Dashboard: What Could Go Wrong?
| Risk | Severity | Commentary |
| Regulatory Delay (Mangalore) | High | NOC from port authorities pending approval |
| Operational Hazards | Moderate | Managed through extensive HSE and training systems |
| Client Concentration | Moderate | Top 10 clients account for ~45% of revenue |
| Lease Tenure | Moderate | Most leases valid through 2051+ |
| Commodity/Trade Cyclicality | Low | Revenue is largely throughput-fee-based and annuity in nature |
Conclusion
Aegis Vopak Terminals is more than just a tank storage operator. It is emerging as a critical enabler of India’s energy security, industrial growth, and sustainability commitments. With high EBITDA margins, a rapidly scaling LPG footprint, backing from global and domestic heavyweights, and alignment with national energy goals — it offers investors an opportunity to ride India’s evolving energy value chain.
While the valuation is steep, so is the entry barrier in this niche, regulation-intensive industry. With terminal expansions underway, improved financials expected post-deleveraging, and sectoral demand tailwinds, this IPO has the makings of a core infrastructure stock in the making.