As the Aegis Vopak Terminals IPO wraps up its final day of bidding, investor interest is picking up pace—but not without caution. This much-anticipated public offering, valued at ₹2,800 crore, has sparked discussions around valuations, long-term potential, and near-term risks.
Final Day IPO Subscription Update: Muted But Steady
As of 10:29 a.m. on Wednesday, May 28, the IPO had been subscribed just 0.39 times. A total of 2,52,78,183 bids were placed against the 6,55,31,915 shares available. Retail investors showed slightly more interest with 0.53 times subscription, while non-institutional investors (NIIs) lagged at just 0.16 times. Qualified institutional buyers (QIBs) subscribed 0.45 times, according to data from the exchanges.
The IPO opened on May 26 and saw a 27% subscription rate on Day 1, inching up to 37% on Day 2. The price band was set between ₹223 and ₹235 per share.
Aegis Vopak Terminals IPO GMP Today: What the Grey Market Says
Market observers report that shares of Aegis Vopak Terminals Ltd are currently trading at ₹240 in the grey market—a modest 2.13% premium over the upper IPO price of ₹235. This suggests that investors can expect mild listing gains when the stock debuts on June 2 on both BSE and NSE.
It’s important to note that the grey market premium (GMP) is not an official metric and is highly sentiment-driven, fluctuating with market trends.
Should You Subscribe to the Aegis Vopak Terminals IPO?
Despite the lukewarm subscription so far, most brokerage firms recommend subscribing—especially for long-term investors eyeing India’s growing energy infrastructure sector.
Bajaj Broking assigned a “subscribe for long term” rating, highlighting the company’s financial turnaround. Aegis Vopak posted a net profit of ₹86.54 crore in FY24 after a marginal loss the previous year. Still, analysts caution that the IPO’s pricing appears steep when measured against traditional valuation metrics like price-to-earnings (P/E), given its recent return to profitability.
Similarly, BP Wealth pointed to the company’s stable cash flows, long-term contracts, and asset-heavy model as reasons to consider subscribing. They valued the IPO at a P/E of 198x on FY25 earnings, acknowledging the premium but backing the company’s growth trajectory.
Brokerage firms Ventura and Aditya Birla Capital echoed similar views, emphasizing the company’s plans to expand LPG capacity and invest in green ammonia ventures. Aditya Birla Capital also noted that ₹2,016 crore from the IPO proceeds will go toward debt repayment, boosting financial flexibility.
IPO Structure and Strategic Insights
This is a 100% fresh issue, with no offer-for-sale component. According to the red herring prospectus, ₹671.30 crore will fund a cryogenic LPG terminal acquisition in Mangalore, while the remainder supports general corporate expenses.
AVTL operates strategically located tank terminals across both coasts of India, handling products like LPG, chemicals, and edible oils. These locations near key ports offer significant advantages in terms of logistics, faster turnaround, and reduced delivery costs. Their infrastructure focus aligns with India’s long-term energy and logistics development plans.
Lead managers for the IPO include ICICI Securities, BNP Paribas, IIFL Capital Services, Jefferies India, and HDFC Bank.
That said, potential risks flagged by analysts include industry slowdown, safety regulation compliance, and possible conflicts of interest due to similar businesses operated by promoters.
Overall, the Aegis Vopak Terminals IPO offers a blend of moderate near-term risk and strong long-term upside—best suited for investors with a strategic outlook on India’s infrastructure and energy logistics landscape.