Aegis Vopak Terminals Files DRHP With SEBI for IPO

Aegis Vopak Terminals Limited is a collaborative venture formed by the promoters, Aegis Logistics, and the Dutch tank storage company subsidiary, Vopak India BV. This company manages tank storage terminals for liquified petroleum gas (LPG) as well as other liquid products.

Aegis Vopak Terminals filed for the IPO

Aegis Vopak Terminals, a subsidiary of Aegis Logistics Ltd., has filed draft papers with capital markets regulator Sebi to raise Rs. 3,500 crore through an initial public offering (IPO). The proposed IPO is entirely a fresh issue of equity shares with no offer-for-sale (OFS) component, according to the draft red herring prospectus (DRHP).

Additionally, the company specializing in tank storage for LPG and chemicals may secure up to Rs. 700 crore through a pre-IPO placement. If this placement occurs, it will decrease the size of the public offering. The funds, totalling Rs. 2,027.18 crores, will be utilized to pay off debt, with Rs. 671.30 crores earmarked for capital expenditures related to the purchase of a cryogenic LPG terminal in Mangalore, while the remaining funds will be designated for general corporate needs. The book-running lead managers for the offering are ICICI Securities, BNP Paribas, IIFL Capital Services, Jefferies India, and HDFC Bank.

Aegis Vopak Terminals borrowings 

As of June 2024, the company reported total borrowings of Rs. 2,584 crore. At present, Vopak India BV holds a 50.1% stake, while Aegis Logistics owns 47.31% in Aegis Vopak Terminals.

More about Aegis Vopak Terminals

As of June 2024, Aegis Vopak Terminals operates a network of 18 storage tank terminals across India. These facilities provide safe storage for a range of liquids, including petroleum, vegetable oils, lubricants, chemicals, and gases like LPG, propane, and butane. The terminals are strategically located close to key ports and major shipping routes, offering considerable benefits such as faster evacuation through pipelines, rail, and road, lower transportation costs, and improved delivery times.

The terminaling sector is greatly influenced by the strategic placement of storage terminals. Terminals situated close to key shipping lanes and well-linked ports have an advantage, as they lower last-mile delivery expenses and ensure quicker delivery times.

Aegis Logistics Ltd. stock is down more than 5% 

Aegis Vopak Terminals, a division of Aegis Logistics Ltd., is currently trading at Rs. 796.55 per share, having reached a low of Rs. 786.05.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.