Aegis Vopak Terminals IPO GMP: A Comprehensive Guide
Introduction
Aegis Vopak Terminals Limited (AVTL), a joint venture between Aegis Logistics and Royal Vopak, has launched its Initial Public Offering (IPO) to raise ₹2,800 crore. The IPO opened for subscription on May 26, 2025, and will close on May 28, 2025. This article provides an in-depth analysis of the IPO, focusing on the Grey Market Premium (GMP), subscription details, and key aspects investors should consider.
Understanding the Grey Market Premium (GMP)
What is GMP?
The Grey Market Premium (GMP) is the premium at which IPO shares are traded in the unofficial market before their official listing on stock exchanges. It serves as an indicator of investor sentiment and potential listing price.
Current GMP for Aegis Vopak Terminals IPO
As of May 26, 2025, the GMP for Aegis Vopak Terminals IPO stands at ₹14.5. Considering the upper price band of ₹235, this suggests a potential listing price of ₹249.5, indicating a 6.17% gain over the issue price.
IPO Details at a Glance
Key Information
| Parameter | Details |
|---|---|
| IPO Open Date | May 26, 2025 |
| IPO Close Date | May 28, 2025 |
| Price Band | ₹223 to ₹235 per share |
| Lot Size | 63 shares |
| Minimum Investment | ₹14,049 (at lower price band) |
| Issue Size | ₹2,800 crore |
| Listing Date | June 2, 2025 (tentative) |
| Exchanges | NSE and BSE |
| Registrar | Link Intime India Private Limited |
Subscription Status
On the first day of bidding (May 26, 2025), the IPO received a muted response:
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Overall Subscription: 6%
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Retail Individual Investors (RIIs): 12%
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Qualified Institutional Buyers (QIBs): 7%
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Non-Institutional Investors (NIIs):
Despite the slow start, analysts anticipate increased participation in the remaining days.
Use of IPO Proceeds
The funds raised through the IPO will be allocated as follows:
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Debt Repayment: ₹2,016 crore
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Capital Expenditure (acquisition of a cryogenic LPG terminal in Mangalore): ₹671.30 crore
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General Corporate Purposes: Remaining amount
Company Overview
Aegis Vopak Terminals Limited is India's largest independent tank storage operator for LPG and various liquid products. The company operates storage tank terminals across India and is a subsidiary of Aegis Logistics Ltd.
Investment Considerations
Advantages
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Market Leadership: AVTL is the largest independent tank storage operator in India.
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Strategic Partnerships: The joint venture with Royal Vopak brings international expertise.
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Growth Potential: The LPG and liquid storage industry in India is poised for growth, offering opportunities for AVTL.
Risks
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Muted Initial Subscription: The IPO received a lukewarm response on the first day.
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Market Volatility: External factors could impact stock performance post-listing.
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Execution Risks: Implementing expansion plans effectively is crucial for future growth.
Conclusion
The Aegis Vopak Terminals IPO presents an opportunity to invest in a market-leading company within the energy logistics sector. While the current GMP suggests moderate listing gains, investors should consider the company's fundamentals, industry outlook, and personal risk appetite before making investment decisions.
