Aegis Vopak Terminals IPO: SEBI gives approval for Rs.3,500 Crore IPO

Aegis Vopak Terminals Limited, a Gujarat-based company, has received the green light from SEBI (Securities and Exchange Board of India) to launch its ₹3,500 crore initial public offering (IPO). The company had earlier submitted its Draft Red Herring Prospectus (DRHP) to SEBI on November 18, 2024.

Only Fresh Issue, No Offer for Sale

The upcoming IPO will consist entirely of a fresh issue of equity shares worth ₹3,500 crore. This means there will be no offer-for-sale (OFS) by existing shareholders, and all funds raised will go directly to the company.

The equity shares of Aegis Vopak Terminals are planned to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) after the IPO.

Leading Banks Managing the IPO

Some of the top financial institutions are managing this public issue. The book-running lead managers (BRLMs) for the IPO include:

• ICICI Securities Limited
• BNP Paribas
• IIFL Capital Services Limited
• Jefferies India Private Limited
• HDFC Bank Limited

The company may also consider a pre-IPO placement of up to ₹700 crore before it files the final Red Herring Prospectus (RHP) with the Registrar of Companies (RoC).

How the Funds Will Be Used

Aegis Vopak Terminals plans to use the IPO proceeds for key business needs. The money raised will go towards:

• Repaying or prepaying outstanding loans
• Funding the acquisition of a cryogenic LPG terminal in Mangalore
• Supporting operational and business growth

These steps are expected to help the company reduce its debt burden and expand its infrastructure and capabilities.

Strong Financial Growth

The company reported solid financial performance in the last fiscal year. For the financial year ending March 31, 2024, Aegis Vopak Terminals recorded a revenue of ₹561.76 crore, which shows a 59% growth compared to ₹353.33 crore in the previous year.

India’s Largest Third-Party LPG Storage Operator

Aegis Vopak Terminals operates a large network of storage tank terminals across India. The company owns:

• 1.5 million cubic meters of storage capacity for liquid products
• 70,800 metric tons of static storage capacity for liquefied petroleum gas (LPG)

With this scale, it stands as India’s largest third-party owner and operator of tank storage terminals for LPG and other liquid products.