Aegis Vopak Terminals IPO to list on Monday; here’s what GMP signals ahead of debut

Aegis Vopak Terminals IPO: Aegis Vopak Terminals IPO: The IPO of Aegis Vopak Terminals, which recently concluded, is set to debut on the Indian stock exchanges on Monday, June 2. The issue received a muted response from all categories of investors during its bidding period between May 26 and May 28, resulting in an overall subscription of 2.2 times.

Analysts attribute the weak demand to steep valuations. Based on annualized FY25 earnings, the issue is seeking a P/E of 235 times and an EV/EBITDA of nearly 57 times. For FY24, the P/E stands at 301 times, and the post-issue market capitalization is estimated at ₹260,378 million—making the issue appear excessively priced, according to analysts.

Given the subdued demand, investor focus has now shifted to potential listing gains, typically gauged by the grey market premium (GMP).

According to market sources, the company’s shares are expected to debut on Dalal Street at 1% above the IPO price, as the GMP for Aegis Vopak Terminals stood at ₹3 per share as of Friday. This suggests that the stock may list at ₹238 apiece— ₹3 higher than the upper end of the IPO price band of ₹235.

The mainboard IPO, valued at ₹2,800 crore, is entirely a fresh issue of 11.91 crore shares. According to exchange data, the portion reserved for non-institutional investors was subscribed 0.59 times, retail investors 0.81 times, and qualified institutional buyers 3.47 times.

The company proposes to utilize the net proceeds from the issue towards repayment or prepayment of all or a portion of certain outstanding borrowings, funding capital expenditure towards the contracted acquisition of the cryogenic LPG terminal at Mangalore, and for general corporate purposes.

About Aegis Vopak Terminals

The company in its DRHP said that it is the largest Indian third-party owner and operator of tank storage terminals for liquefied petroleum gas and liquid products in terms of storage capacity, as of June 30, 2024.

It owns and operates a network of storage tank terminals having an aggregate storage capacity of approximately 1.50 million cubic meters for liquid products and 70,800 metric tons (“MT”) of static capacity for LPG as of June 30, 2024, and offers secure storage facilities and associated infrastructure for liquids such as petroleum, vegetable oil, lubricants, and various categories of chemicals and gases such as LPG (including propane and butane).

The company also stated that it has the largest storage capacity in India’s LPG tank storage sector, contributing to approximately 12.23% of the total national static capacity as of June 30, 2024.

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