IPO will list on 2 Jun'25
Aegis Vopak Terminals Ltd
Minimum Investment
₹ 14,805 / 63 shares
Grey market premium
₹ 1 (0.4% premium)
Our Verdict:
Avoid
- Aegis Vopak Terminals Ltd (AVTL) is India’s largest third-party owner and operator of tank storage terminals for liquified petroleum gas (LPG) and liquid products. After reporting losses in FY22 and FY23, the company turned profitable in FY24.
- Through this IPO, AVTL plans to utilise ~Rs 2,016 crore for debt repayment and invest ~Rs 671 crore in capacity expansion.
- From a valuation standpoint, the IPO appears aggressively priced with a price-to-earnings (P/E) multiple of 235x based on FY24 earnings. While AVTL’s LPG capacity expansion and future plans for green ammonia offer promising long-term growth, these prospects are distant and uncertain. Although such growth assumptions may be reasonable from a long-term viewpoint, the current valuation assumes significant and near-certain growth that is yet to materialize—posing considerable risk for investors.
- Given these considerations, long-term investors should closely monitor AVTL’s execution and progress over the coming quarters before making an investment decision.
About the company
Founded in
28 May'13
Managing director
Raj Kapurchand Chandaria
- AVTL is India’s largest third-party owner and operator of tank storage terminals for liquified petroleum gas (LPG) and liquid products. It provides secure storage and infrastructure for a diverse range of products, including petroleum, chemicals, lubricants, vegetable oils and LPG. The company also plans to commission an ammonia storage facility by FY26.
- As of December 31, 2024, AVTL operates a nationwide network with a total storage capacity of ~1.5 million cubic meters for liquid products and 70,800 metric tons of static capacity for LPG. Its terminals are strategically located at five major ports along India’s West and East coasts. These ports collectively handle ~23% of India’s liquid imports and 61% of its LPG imports, positioning AVTL as a vital logistics partner in the country’s energy and chemicals supply chain.
STRENGTHS
- Market Leadership: AVTL holds a dominant position as India’s largest third-party owner and operator of tank storage terminals for LPG and liquid products, based on storage capacity. As of December 31, 2024, it accounts for ~11.5% of India’s total static LPG storage capacity and 25.5% of the third-party liquid storage capacity.
- Strong Financial Turnaround: FY24 marked a significant improvement in AVTL’s financial performance, with net profit surging to Rs 86.54 crore from a marginal loss of Rs 0.07 crore in FY23. EBITDA also rose by 75%, reflecting operational efficiency and stronger earnings quality.
- Margin Expansion: AVTL demonstrated robust margin improvement, with EBITDA margin increasing from 65.16% to 71.19% and net profit margin swinging from -0.02% in FY23 to 15.18% in FY24, further rising to 18.04% by December 2024.
- Capacity Expansion: AVTL is aggressively expanding its LPG infrastructure with two new cryogenic static storage terminals in Karnataka and Gujarat. This will almost triple its total LPG storage capacity to 200,800 MT. Both facilities are expected to be operational within the year, supporting growth over the next 2-3 years.
RISK FACTORS
- Client Concentration: As of December 31, 2024, approximately 45% of AVTL’s revenue is derived from its top 10 customers. A decline in business from these key customers could adversely affect its operations and results.
- Legal Risks: AVTL and its subsidiaries, promoters and directors are currently involved in legal proceedings with outstanding claims totalling nearly Rs 332 crore. A negative outcome from these legal challenges could harm the company’s reputation, financial health and cash flows.
- JV Relationship Risks: AVTL is a joint venture between Aegis Logistics and Vopak India BV. Any deterioration or conflict in the relationship between these promoters may disrupt operations and adversely affect financial performance and cash flows.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 2,800 crore
Fresh Issue
₹ 2,800 crore
OFS
₹ -
Price range
₹ 223 - 235
Lot size
63 shares
Issue Objective
The net proceeds from the fresh issue will be utilized for:
- Repayment/ pre-payment of certain borrowings availed by the company;
- Funding the acquisition of the contracted cryogenic LPG terminal at Mangalore; and
- General corporate purposes.
Dates
Bidding open
26 May'25
Bidding close
28 May'25
Allotment date
29 May'25
Refund date
30 May'25
Listing
2 Jun'25
IPO Reservations
Qualified institutional buyers
>75%
Non-institutional investors
<15%
Retail individual investors
<10%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.