Aegis Vopak Terminals IPO Ranked: Should You Invest Now or Wait?

Aegis Vopak Terminals Limited (AVTL), a joint venture between India’s Aegis Logistics and Dutch firm Royal Vopak, is set to launch its Initial Public Offering (IPO) on May 26, 2025. The company aims to raise ₹2,800 crore through a fresh issue of equity shares, with a price band set at ₹223–₹235 per share.

AVTL operates storage terminals for liquefied petroleum gas (LPG) and other liquid products across major Indian ports. The company has demonstrated strong financial growth, with revenue increasing by 44% to ₹418 crore in FY24 and profits rising to ₹47 crore from ₹5 crore.

• Issue Size: ₹2,800 crore (entirely fresh issue)
• Price Band: ₹223–₹235 per share
• Lot Size: 63 shares; minimum investment of ₹14,049
• Subscription Period: May 26–28, 2025
• Listing Date: Expected on June 2, 2025, on BSE and NSE
• Promoter Holding Post-IPO: Expected to reduce from 97.4% to approximately 87%

• Debt Repayment: ₹2,016 crore
• Acquisition: ₹671.3 crore for acquiring a cryogenic LPG terminal at Mangalore
• General Corporate Purposes: Remaining funds

AVTL has secured ₹1,260 crore from 32 anchor investors, including Nomura, Aberdeen, HDFC Mutual Fund, and SBI General Insurance, indicating strong institutional confidence.

• Market Capitalization: Approximately ₹26,000 crore at the upper price band
• Price-to-Earnings (P/E) Ratio: 187.7
• Price-to-Book (P/B) Ratio: 5.4
• Return on Capital Employed (ROCE): 9.58%

While AVTL’s strong financial performance and strategic expansion plans are promising, the high valuation metrics suggest that investors should carefully assess the IPO’s pricing relative to industry peers. The company’s focus on debt reduction and infrastructure growth positions it well for future scalability.

The Aegis Vopak Terminals IPO presents an opportunity to invest in India’s growing energy infrastructure sector. Potential investors should weigh the company’s robust growth prospects against its current valuation to make informed decisions.