Aegis Vopak Terminals IPO: Is This Infrastructure Giant Worth Your Bid?

Introduction

India’s infrastructure backbone doesn’t just rest on roads and railways—it also includes storage tanks, ports, pipelines, and logistics that quietly power your cooking gas, fuels, and chemicals. Aegis Vopak Terminals Limited (AVTL), a joint venture between Aegis Logistics and Royal Vopak (Netherlands), is one such silent powerhouse.

Now, AVTL is stepping into the limelight with a ₹3,500 crore IPO, aiming to boost its storage capabilities and reduce debt. It’s not a consumer brand, but its importance in India’s energy supply chain is massive—handling LPG, petroleum, vegetable oils, and over 30 types of chemicals across five major Indian ports.

With improving financials, rising profitability, and expansion plans in motion, the big question is: Should you store this IPO in your long-term portfolio?

Let’s decode.

Aegis Vopak Terminals IPO Details

Aegis Vopak Terminals is launching a ₹3,500 crore IPO, entirely a fresh issue of 14.89 crore equity shares. The IPO is aimed at capital expansion, debt repayment, and general corporate purposes.

Particulars	Details
IPO Open Date	May 26, 2025
IPO Close Date	May 28, 2025
Listing Date	June 2, 2025 (Tentative)
Price Band	₹223 to ₹235 per share
Face Value	₹10 per share
Lot Size	63 shares
Retail Min Investment	₹14,805
Fresh Issue	14.89 crore shares (₹3,500 Cr)
Offer for Sale	None
Issue Type	Book Built Issue
Listing Exchange	NSE, BSE
Pre-Issue Holding	97.41%
Post-Issue Holding	85.93%

IPO Reservation

Investor Category	Allocation
QIB	Not less than 75%
NII (HNI)	Not more than 15%
Retail	Not more than 10%

📌 The registrar for the IPO is Link Intime, and the lead managers include ICICI Securities, BNP Paribas, IIFL Securities, Jefferies, and HDFC Bank.

Important Dates: Aegis Vopak Terminals IPO Timeline

Mark your calendar—Aegis Vopak Terminals is a three-day IPO with a quick turnaround between closing and listing. Here’s the full tentative schedule:

Event	Date
IPO Opens	Monday, May 26, 2025
IPO Closes	Wednesday, May 28, 2025
Cut-off Time for UPI Mandate	5 PM on May 28, 2025
Basis of Allotment	Thursday, May 29, 2025
Refunds Initiated	Friday, May 30, 2025
Shares Credited to Demat	Friday, May 30, 2025
Listing Date (BSE/NSE)	Monday, June 2, 2025

📌 Retail investors are advised to apply at the cut-off price and confirm their UPI mandate before 5 PM on May 28 to avoid rejection.

IPO Objectives: What Will Aegis Vopak Do With ₹3,500 Cr?

This IPO is purely a fresh issue, which means all proceeds go directly into the company—not into promoter pockets. The fund allocation shows a clear focus on infrastructure growth and financial discipline.

Here’s the breakdown:

1️⃣ Repayment of Outstanding Borrowings

Aegis Vopak plans to reduce its financial leverage by repaying or prepaying a portion of its outstanding loans. This move will improve the debt-to-equity ratio and reduce interest outgo.

2️⃣ Capex for Mangalore LPG Terminal Acquisition

Part of the funds will be used for the contracted acquisition of a cryogenic LPG terminal at Mangalore—expanding the company’s reach in India’s southern energy corridor.

3️⃣ General Corporate Purposes

The remaining funds will support working capital needs, tech upgrades, and other strategic initiatives to enhance operational efficiency.

📌 Takeaway: The objective signals a company preparing for long-term, infrastructure-led growth while reducing debt—a combination institutional investors usually favor.

Company Business: India’s Storage Backbone

Aegis Vopak Terminals Limited (AVTL) is a vital link in India’s energy and chemical logistics infrastructure. Incorporated in 2013, the company specializes in bulk storage and handling of LPG, petroleum products, chemicals, and edible oils. Its facilities serve as the backbone of coastal shipping, imports, and exports—critical for maintaining supply chain efficiency across industries.

Promoter Strength and Strategic Backing

Aegis Vopak Terminals Limited operates as a joint venture between Aegis Logistics Limited and Vopak India BV, a subsidiary of Royal Vopak, the world’s largest independent tank storage company.

One of the promoters, Aegis Logistics, plays a critical role in India’s oil, gas, and chemical logistics. As of June 30, 2024, Aegis:

• Handles over 20% of India’s LPG imports, making it the largest third-party LPG handler in the country.
• Operates a 275,000 cubic metre liquid terminal that supports a wide range of industrial clients.
• Owns and runs a 21,000 MT cryogenic LPG terminal in Mumbai, with the capacity to handle up to 1.5 million metric tons per annum (MMTPA).

These capabilities enable Aegis Vopak to benefit from proven operational scale, deep industry expertise, and a strong foundation for future expansion.

Business Model: Infrastructure-as-a-Service for Liquids and Gases

AVTL operates a capital-intensive, asset-heavy model that offers storage infrastructure as a service. This model is based on long-term and short-term contracts with oil marketing companies, petrochemical firms, chemical manufacturers, and edible oil players. The company generates revenue from:

• Rental/lease income for tank storage
• Throughput fees for handling and movement
• Ancillary logistics services at port terminals

This recurring-revenue model provides high visibility and stability, even during commodity price fluctuations.

Business Segments

1. Gas Terminal Division
This division is dedicated to handling and storing liquefied petroleum gas (LPG), including propane and butane. AVTL currently operates two LPG terminals with a combined capacity of 70,800 metric tons of static LPG storage.

2. Liquid Terminal Division
The liquid segment focuses on the storage of a diverse range of bulk liquids such as:

• Petroleum derivatives
• Chemicals (over 30 different types)
• Edible and non-edible oils (more than 10 types)

AVTL manages 16 liquid storage terminals with a total liquid capacity of 1.5 million cubic meters, spread across five major Indian ports.

Terminal Footprint

AVTL’s strategically located port infrastructure allows it to serve a wide industrial base across India. Its key terminals include:

Location	State	Products Handled
Haldia	West Bengal	LPG and liquids
Kochi	Kerala	LPG and liquids
Mangalore	Karnataka	LPG (new acquisition)
Pipavav	Gujarat	Liquids
Kandla	Gujarat	Liquids

This network enables AVTL to cater to the eastern, western, and southern industrial corridors, making it a nationally integrated terminal player.

Customer Base

While customer names are not disclosed, AVTL’s clients typically include:

• Oil marketing companies (OMCs)
• Petrochemical firms
• Global and domestic edible oil players
• Multinational chemical manufacturers

The client base is typically B2B, and many contracts are long-term in nature, ensuring consistent utilization of terminal capacity.

Financials: Steady Growth with Improving Profitability

Aegis Vopak Terminals has shown strong revenue traction and a significant turnaround in profitability over the last three years. From a near-zero revenue base in FY22, the company has scaled up rapidly on the back of capacity additions, improved utilization, and strong demand for industrial storage infrastructure.

Consolidated Financial Performance (₹ in Crore)

Particulars	FY22	FY23	FY24	Q1 FY25 (Jun 2024)
Revenue	0.00	355.99	570.12	156.37
Profit After Tax	-1.09	-0.08	86.54	25.78
Total Assets	102.56	3,481.48	4,523.40	4,483.41
Net Worth	-0.53	1,098.20	1,151.94	1,177.40
Total Borrowings	98.10	1,745.17	2,586.42	2,584.18

Analysis:

1. Revenue Growth: The company recorded a more than 60% increase in revenue from FY23 to FY24, reflecting strong operational ramp-up.
2. Profitability Turnaround: After two years of marginal or negative PAT, AVTL turned profitable in FY24 with a net profit of ₹86.54 crore. The momentum continues in FY25 with ₹25.78 crore PAT in just the first quarter.
3. Capital Structure: The company’s net worth has improved substantially, turning positive in FY23 and rising steadily since.
4. Borrowings: While debt has increased due to infrastructure capex, the IPO proceeds are intended to partly reduce this burden.

Key Performance Indicators

Metric	Value (FY24/Q1 FY25)
Return on Equity (ROE)	8.68%
Return on Capital Employed (ROCE)	8.39%
PAT Margin	15.18%
Debt-to-Equity Ratio	2.59
Return on Net Worth (RoNW)	7.51%
Price to Book Value	17.71

Interpretation:
While AVTL’s return ratios are moderate, they are improving steadily. The PAT margin of over 15% reflects strong cost control and high operating leverage. The company’s debt level is elevated, but the proceeds from the IPO aim to bring this down significantly.

Valuation: Pricing the Infrastructure Ambition

Aegis Vopak Terminals is seeking a post-issue valuation of around ₹26,738 crore, with a price band of ₹223–₹235 per share. At the upper end of the band, the company is being offered at:

• Pre-IPO EPS: ₹0.88
• Post-IPO EPS: ₹0.91
• Pre-IPO P/E: 268.5x
• Post-IPO P/E: 259.3x

These valuation multiples are significantly higher than industry norms, especially considering the company’s modest scale and recent profitability.

Peer Comparison

Company	EPS (₹)	P/E (x)	RoNW (%)
Aegis Vopak Terminals	0.91	259.32	7.51
Adani Ports and SEZ Ltd.	37.55	33.68	15.32
JSW Infrastructure Ltd.	6.01	49.42	14.40

Interpretation:

• Premium Multiples: At a P/E of over 250x, Aegis Vopak Terminals is priced at a significant premium to both Adani Ports and JSW Infrastructure, which are far larger, more diversified, and deliver stronger return ratios.
• Low Base Effect: The high P/E may be partially justified by a low earnings base, but that also signals that much of the company’s future growth is already priced in.
• Moderate Returns: With a Return on Net Worth (RoNW) of just 7.51%, the company trails its peers in capital efficiency.

Bottom line: Unless earnings accelerate sharply in the coming years, this IPO may look expensive when compared to well-established infrastructure plays in the market. Valuation comfort would depend largely on execution and margin expansion.

Grey Market Premium (GMP):

Grey Market Premium (GMP) trend for the Aegis Vopak Terminals IPO. The GMP indicates the unofficial premium being paid by investors in the grey market and offers insight into the likely listing sentiment:

Date	IPO Price	GMP	Estimated Listing Price	Estimated Profit
27-May-2025	₹235.00	₹6	₹241 (2.55%)	₹378
26-May-2025	₹235.00	₹11	₹246 (4.68%)	₹693
25-May-2025	₹235.00	₹14.5	₹249.5 (6.17%)	₹913.5
24-May-2025	₹235.00	₹15	₹250 (6.38%)	₹945
23-May-2025	₹235.00	₹15	₹250 (6.38%)	₹945

💡 Insight:
Aegis Vopak Terminals IPO saw a steady decline in its GMP from ₹15 to ₹6 over five days. The weakening sentiment in the grey market may point to investor caution around valuations or near-term fundamentals. The estimated listing gain now stands at a modest 2.5%, significantly down from the earlier 6%+ premium.

Conclusion: Should You Subscribe to Aegis Vopak Terminals IPO?

Aegis Vopak Terminals presents a unique opportunity to invest in a company operating critical liquid and gas storage infrastructure at key Indian ports. It offers a rare play on India’s energy logistics chain—a segment that is capital-intensive, difficult to replicate, and poised for long-term relevance as trade and consumption grow.

Positives:

• Strong asset base with nationwide port connectivity
• Clear use of IPO proceeds to reduce debt and expand capacity
• Stable, recurring cash flows from long-term contracts
• Strategic backing from Aegis Logistics and Royal Vopak

Concerns:

• Valuation is steep compared to peers with stronger profitability
• Debt levels are high, even post-IPO
• Return ratios and earnings base are still in the early stage of expansion
• High P/E leaves little room for error in execution

Listing Gain View:

Conservative. While demand from institutional investors may drive subscription, aggressive pricing may limit upside potential on debut, especially without strong GMP cues.

Long-Term View:

Cautiously optimistic. If AVTL executes well—completes its expansion, improves utilization, and strengthens margins—the company could deliver stable compounding over the next 3–5 years. However, this will require patient capital and an appetite for infrastructure risk.

Verdict: Aegis Vopak Terminals is a strong business in a niche segment, but current valuations demand perfect execution. Best suited for long-term investors comfortable with premium-priced infrastructure bets.

Apply to IPOs in one click with Angel One — fast, simple, and reliable.

FAQs

What is the Aegis Vopak Terminals IPO date?

The IPO will open on May 26, 2025, and close on May 28, 2025.

What is the size and structure of the Aegis Vopak IPO?

The issue size is ₹3,500 crore, entirely a fresh issue of 14.89 crore equity shares. There is no offer for sale component.

What is the price band and lot size?

The IPO is priced between ₹223–₹235 per share. The lot size is 63 shares, with a minimum investment of ₹14,805 for retail investors.

What does the company do?

Aegis Vopak Terminals owns and operates LPG and liquid storage terminals across five major Indian ports. It offers infrastructure-as-a-service for energy and chemical logistics.

Is Aegis Vopak IPO GMP available?

As of now, no Grey Market Premium (GMP) has been reported. Investors should monitor market sentiment and QIB subscription trends for cues.

Should I invest in the Aegis Vopak IPO?

The company has strong fundamentals and sector relevance, but its steep valuation compared to peers like Adani Ports and JSW Infrastructure warrants cautious evaluation. Ideal for long-term investors with moderate risk appetite.

Related Articles

Leela Hotels IPO: Will Luxury Hospitality Deliver Listing Gains?