Aegis Vopak Terminals Set for Rs 3,500 Crore IPO Launch

Aegis Vopak Terminals, a subsidiary of Aegis Logistics Ltd, plans to raise Rs 3,500 crore through a fresh equity IPO. The funds will address debt, capital expenditures, and corporate needs. The firm's strategic terminal locations enhance its competitive advantage in the storage and transportation sector.

Aegis Vopak Terminals, part of Aegis Logistics Ltd, has submitted draft documents to SEBI for a Rs 3,500 crore initial public offering (IPO). The offering will consist entirely of fresh equity shares, with no offer-for-sale component, the draft red herring prospectus (DRHP) states.

The tank storage company focuses on LPG and chemicals, and may also secure up to Rs 700 crore in a pre-IPO placement, potentially reducing the public issue size. The IPO proceeds, amounting to Rs 2,027.18 crore, are earmarked for debt repayment, while Rs 671.30 crore is allocated for capital expenditure, particularly the acquisition of a cryogenic LPG terminal in Mangalore. Remaining funds will cover corporate expenses.

As of June 2024, Aegis Vopak Terminals reported total borrowings of Rs 2,584 crore. Currently, Vopak India BV and Aegis Logistics own 50.1% and 47.31% stakes, respectively. The company operates 18 storage tank terminals across India, optimally located near ports and shipping routes, which offer competitive advantages such as faster evacuation, reduced delivery costs, and enhanced delivery times. ICICI Securities, BNP Paribas, IIFL Capital Services, Jefferies India, and HDFC Bank are the issue's lead managers.

(With inputs from agencies.)