Aegis Vopak Terminals has filed DRHP with the Securities and Exchange Board of India (SEBI) to initiate an initial public offering (IPO). Aegis Vopak Terminals IPO aims to raise INR 3,500 crore through a fresh issue of shares. This move is significant as it marks the company’s entry into the public market, with the IPO consisting entirely of a fresh issue, as detailed in its DRHP. Since there is no Offer For Sale (OFS) by its parent Aegis Logistics, entire issue proceeds of Aegis Vopak Terminals IPO will go to Aegis Vopak Terminals.
Aegis Vopak Terminals IPO: Issue Proceeds
According to Aegis Vopak Terminals DRHP, the company plans to utilize approximately INR 2,027.18 crore of the proceeds to pay down existing debt, while INR 671.30 crore is earmarked for capital expenditures related to the acquisition of a cryogenic LPG terminal located in Mangalore. The remaining funds will be allocated for general corporate purposes. As of June 2024, Aegis Vopak Terminals reported total borrowings of INR 2,584 crore.
Ahead of Aegis Vopak IPO, the company may also consider raising INR 700 crore through a preferential issue. If executed, this preferential issue would reduce the overall size of the public offering.
Aegis Vopak Terminals IPO: Business Background
Aegis Vopak operates a network of 18 storage tank terminals across India, which provide secure storage solutions for various liquids including petroleum, vegetable oil, lubricants, and chemicals. This makes the company the largest independent tank storage operator for liquefied petroleum gas (LPG) and liquid products in India, boasting a total storage capacity of approximately 1.5 million cubic meters for liquids and 70,800 metric tons for LPG as of June 30, 2024. This capacity accounts for about 12.23% of the national static capacity for LPG and 26.64% of the third-party liquid storage capacity in the country, according to a CRISIL report.
The company operates a strategically diversified network of terminals across five key ports on India’s east and west coasts, which collectively handle around 23% of liquid and 61% of total LPG import volumes in India. These terminals are equipped with essential facilities, including product storage tanks, firefighting systems, pipelines connected to jetties, and infrastructure for loading and unloading products via ship, rail, road, and pipelines.
Lead managers for this upcoming IPO include prominent financial institutions such as ICICI Securities, BNP Paribas, IIFL Capital Services, Jefferies India, and HDFC Bank.
Aegis Vopak IPO is poised to attract significant attention from investors due to Aegis Vopak’s established position in the terminal industry and its strategic advantages in logistics and storage solutions. For more information related to IPO stay tuned with IPO Central.
