Aegis Vopak IPO Terminals: Check day 2 subscription status, latest GMP and more

Aegis Vopak Terminals launched its initial public offering (IPO) on Monday, May 26, with the subscription period ending on Wednesday, May 28. The price band for the IPO is set between Rs 223 and Rs 235 per share, with investors needing to purchase a minimum of 63 shares.

The IPO aims to raise Rs 2,800 crore, entirely through fresh issuance of equity shares. Aegis Vopak had allocated 5.36 crore shares to anchor investors at Rs 235 each, mobilising Rs 1,260 crore. 

According to the data, the investors made bids for 2,14,37,514 equity shares, or 31 per cent, compared to the 6,90,58,296 equity shares offered for the subscription by 3.05 pm on Tuesday, May 27, 2025. The issue was overall booked 26 per cent on the first day of the bidding.

The allocation for retail investors was subscribed 39 per cent, while the portion reserved for non-institutional investors (NIIs) saw a subscription of only nine per cent. However, the quota set aside for qualified institutional bidders (QIBs) was booked 40 per cent as of the same time.

In the grey market, the premium for Aegis Vopak shares has seen a correction, now standing at Rs 10 per share, suggesting potential listing gains of 4-5%. This marks a decrease from the Rs 15 premium observed before the IPO commenced.

Analysts have expressed optimism about the IPO, citing the company's strong parentage, anticipated infrastructure growth, robust financial performance, and a diversified client base as significant positives. However, concerns have been raised about the aggressive pricing, geographical concentration in Western India, and the company's high debt levels.

Aegis Vopak operates in a niche and scalable business model of storage terminals of LPG and liquid products at strategic locations. Customer stickiness at 94% reflects long term contracts and stable cash flows, said Nirmal Bang Securities.

"In addition, strong promoter background will aid AVTL to create a strong footfall in the energy and chemicals tailwind industry. However, valuations are expensive at 60x EV/EBIDTA and 258x P/E for annualized FY25 earnings, hence recommend ‘Neutral’ to the issue," it added.

Aegis Vopak Terminals, incorporated in 2013, specialises in the storage of liquefied petroleum gas (LPG) and various liquid products, providing safe storage infrastructure for petroleum, vegetable oils, lubricants, chemicals, and gases. The company reported a net profit of Rs 85.89 crore on revenue of Rs 476.15 crore for the nine months ending December 31, 2024. For the financial year 2023-24, it had a net profit of Rs 86.54 crore and revenue of Rs 570.12 crore.

While the company’s strategic importance in India’s LPG and liquid bulk infrastructure space justifies a premium to some extent, the pricing seems to factor in strong future growth expectations, said Bajaj Broking.

"Investors should view this IPO as a play on long-term infrastructure and energy logistics growth, but must weigh the premium valuation against the company’s limited historical profitability and execution risks in upcoming capex projects," it added with a 'subscribe' for long-term rating.

ICICI Securities, BNP Paribas, IIFL Securities, Jefferies India, and HDFC Bank are among the lead managers overseeing the process. The company has allocated 75% of the issue for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors. Shares are scheduled to list on both the BSE and NSE on June 2.

Key dates for investors include the closing of the IPO on May 28, the basis of allotment on June 1, initiation of refunds on June 2, credit of shares to Demat accounts on June 3, and the listing on the BSE and NSE on June 2. Investors are advised to confirm their UPI mandate before the cut-off time to ensure successful participation.