Aegis Vopak Terminals shares debut at discount, stock lists 6% below issue price

Shares of Aegis Vopak Terminals debuted on the stock market today at Rs 220 on both the NSE and BSE, marking a 6.38% discount from their issue price of Rs 235. This performance was below market expectations, driven by a noticeable correction in the company's grey market premium.

The grey market premium (GMP) for Aegis Vopak Terminals witnessed a sharp decline, which significantly impacted investor sentiment. The absence of a premium in the unofficial market suggested a flat listing, disappointing many investors who had anticipated stronger performance.

Aegis Vopak Terminals' initial public offering (IPO) was open for subscription from May 26 to May 28, with a price band set between Rs 223 and Rs 235 per share. The company aimed to raise Rs 2,800 crore through the IPO, which involved a fresh issue of 11,91,48,936 equity shares.

The IPO was subscribed 2.09 times overall, receiving approximately 1.35 lakh applications. The segment for qualified institutional bidders (QIBs) demonstrated strong demand, being subscribed 3.30 times. In contrast, non-institutional investors (NIIs) and retail investors showed less interest, with subscriptions at 56% and 77%, respectively.

Incorporated in 2013, Aegis Vopak Terminals operates storage terminals for liquefied petroleum gas (LPG) and a variety of liquid products in Vapi, Gujarat. The company provides essential storage and infrastructure services for petroleum, vegetable oils, lubricants, chemicals, and gases like propane and butane.

Leading the IPO were ICICI Securities, BNP Paribas, IIFL Capital Services, Jefferies India, and HDFC Bank as the book-running lead managers. MUFG Intime India served as the registrar for the issue.

The IPO performance reflects specific market dynamics affecting Aegis Vopak's entry onto the stock exchange. The underwhelming interest from retail and non-institutional investors indicates a cautious approach in the current market climate.

With strong institutional backing but limited retail enthusiasm, Aegis Vopak Terminals faces a challenging market environment following its underwhelming stock market debut. The company will need to focus on strategic growth to bolster investor confidence moving forward.