Aegis Vopak Terminals files draft papers with Sebi; eyes ₹3,500 crore via IPO

Aegis Vopak Terminals, a subsidiary of Aegis Logistics Ltd, has filed draft papers with capital markets regulator Sebi to raise ₹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).

Besides, the tank storage company for LPG and chemicals may raise up to ₹700 crore through a pre-IPO placement. If such a placement is carried out, the size of the public issue will be reduced.

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Proceeds worth ₹2,027.18 crore will be used for payment of debt, ₹671.30 crore to fund capital expenditure for the acquisition of a cryogenic LPG terminal at Mangalore and the remaining amount will be allocated for general corporate purposes.

As of June 2024, the company had a total borrowings of ₹2,584 crore on its books. At present, Vopak India BV and Aegis Logistics hold 50.1% and 47.31% stake, respectively, in Aegis Vopak Terminals.

As of June 2024, Aegis Vopak Terminals owns and operates a network of 18 storage tank terminals across India. These terminals provide secure storage facilities for liquids like petroleum, vegetable oil, lubricants, chemicals, and gases such as LPG, propane, and butane.

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The strategic location of the company’s terminals near key ports, closer to major shipping routes, offers competitive advantages, including faster evacuation through pipelines, rail, and road, lower delivery costs, and improved delivery times.

The terminalling industry relies heavily on the strategic location of storage terminals. Terminals near major shipping routes and well-connected ports gain a competitive edge by reducing last-mile delivery costs and ensuring faster delivery times.

ICICI Securities, BNP Paribas, IIFL Capital Services, Jefferies India and HDFC Bank are the book-running lead managers for the issue.