The initial public offering (IPO) of storage solutions provider Aegis Vopak Terminals, which opened for public subscription earlier today, has attracted a subscription of 26% on Day 1 of the process.The issue is available for bidding till May 28.By the end of the first day of bidding, the issue had received bids for 1,77,49,179 shares out of 6,90,58,296 shares. The retail portion was subscribed 19%, while the non-institutional investor (NII) category saw 3% subscription. 882 bids were received from qualified institutional buyers (QIBs).GMP of Aegis Vopak Terminals IPOAccording to market observers, the IPO is commanding a grey market premium (GMP) of Rs 6-7, indicating a modest 2.5% premium over the issue price.Should you subscribe to Aegis Vopak Terminals IPO?“While the company’s strategic importance in India’s LPG and liquid bulk infrastructure space justifies a premium to some extent, the pricing seems to factor in strong future growth expectations. Investors should view this IPO as a play on long-term infrastructure and energy logistics growth, but must weigh the premium valuation against the company’s limited historical profitability and execution risks in upcoming capex projects.,” said Bajaj Broking.IPO structureThe IPO comprises a complete fresh issue of 11.91 crore shares, aggregating up to Rs 2,800 crore. There is no offer-for-sale component.Minimum investment and lot sizeRetail investors can apply for a minimum of one lot, which includes 63 shares. At the upper price band, this translates to an investment of Rs 14,805. For small HNIs, the minimum application is 14 lots or Rs 2.07 lakh.Use of fundsThe proceeds will be used to repay or prepay certain borrowings, fund the acquisition of a cryogenic LPG terminal at Mangalore, and for general corporate purposes.IPO dates and price bandThe IPO will open on May 26 and close on May 28. The price band is set at Rs 223 to Rs 235 per share. The shares are expected to list on the BSE and NSE on June 2.Financial performanceIn FY24, the company posted a revenue of Rs 570.12 crore and a net profit of Rs 86.54 crore. For nine months ended Dec 2024, PAT stood at Rs 85.89 crore.Book running lead managersICICI Securities, BNP Paribas, IIFL Securities, Jefferies India, and HDFC Bank are managing the issue, while Link Intime is the registrar.
The initial public offering (IPO) of storage solutions provider Aegis Vopak Terminals, which opened for public subscription earlier today, has attracted a subscription of 26% on Day 1 of the process.The issue is available for bidding till May 28.By the end of the first day of bidding, the issue had received bids for 1,77,49,179 shares out of 6,90,58,296 shares. The retail portion was subscribed 19%, while the non-institutional investor (NII) category saw 3% subscription. 882 bids were received from qualified institutional buyers (QIBs).GMP of Aegis Vopak Terminals IPOAccording to market observers, the IPO is commanding a grey market premium (GMP) of Rs 6-7, indicating a modest 2.5% premium over the issue price.Should you subscribe to Aegis Vopak Terminals IPO?“While the company’s strategic importance in India’s LPG and liquid bulk infrastructure space justifies a premium to some extent, the pricing seems to factor in strong future growth expectations. Investors should view this IPO as a play on long-term infrastructure and energy logistics growth, but must weigh the premium valuation against the company’s limited historical profitability and execution risks in upcoming capex projects.,” said Bajaj Broking.IPO structureThe IPO comprises a complete fresh issue of 11.91 crore shares, aggregating up to Rs 2,800 crore. There is no offer-for-sale component.Minimum investment and lot sizeRetail investors can apply for a minimum of one lot, which includes 63 shares. At the upper price band, this translates to an investment of Rs 14,805. For small HNIs, the minimum application is 14 lots or Rs 2.07 lakh.Use of fundsThe proceeds will be used to repay or prepay certain borrowings, fund the acquisition of a cryogenic LPG terminal at Mangalore, and for general corporate purposes.IPO dates and price bandThe IPO will open on May 26 and close on May 28. The price band is set at Rs 223 to Rs 235 per share. The shares are expected to list on the BSE and NSE on June 2.Financial performanceIn FY24, the company posted a revenue of Rs 570.12 crore and a net profit of Rs 86.54 crore. For nine months ended Dec 2024, PAT stood at Rs 85.89 crore.Book running lead managersICICI Securities, BNP Paribas, IIFL Securities, Jefferies India, and HDFC Bank are managing the issue, while Link Intime is the registrar. Economic Times
