Aegis Vopak Terminals Limited IPO

26 May 2025 , 09:15 AM

Aegis Vopak Terminals Limited is a JV between Aegis Logistics Limited and Vopak India BV. Vopak India is a part of Royal Vopak – world’s leading independent tank storage company with over 400 years of experience. The firm is involved in the provision port handling and storage of liquid and gas products such as LPG, petroleum, chemical and petrochemical products.

Aegis Vopak operates a network of storage tank terminals with a total storage capacity of 1.5 m CBM for liquid products and static capacity of 70,800 MT for LPG. The company’s terminals are situated in five main Indian ports, namely Kandla, Pipavav, New Mangalore, Kochi and Haldia, and are equipped with modern infrastructure. It is the largest third-party operator for LPG and liquid storage products with a capacity tantamount to ~25% of India’s third part storage capacity.

Aegis Vopak’s operations comprise liquid storage and handling, gas storage and handling and throughput arrangements. Many of the world’s leading international, regional and national chemical and energy businesses are its customers. It has established and maintained long relationships, some of which have lasted 20 years or more.

Offer Details:

Fresh Issue

The IPO is a fresh issue of up to INR 28,000 m worth of Equity Shares of face value of INR 10 each. The size of the issue is 100% book built, and the price of the shares will be decided on the basis of demand and supply of shares offered by the book-building process.

Offer for Sale

The IPO does not have an OFS. None of the existing shareholders, including promoters are selling their stake in the IPO.

Price Band: INR 223 to INR 235 per share

BRLMs of the Issue

Book Running Lead Managers (BRLMs) to the issue are:

• ICICI Securities Limited
• BNP Paribas
• IIFL Capital Services Limited
• Jefferies India Pvt Ltd
• HDFC Bank Limited

Objectives of the IPO

The principal purposes of the IPO are to employ the net proceeds for paying debt and financing capital expenditures.

De-leveraging/Debt Repayment

The company plans to use INR 20,159.53 million of the net proceeds for repaying  certain borrowings.

Capital Expenditures

To use INR 6,713.00 million to fund capital expenditure for acquisition of cryogenic LPG terminal at Mangalore.

Other General Corporate Use

The company will use the remaining net proceeds for general corporate purposes, provided that such use shall not exceed 25% of the gross proceeds.

 Industry Overview:

History and Origins

Liquefied Petroleum Gas (LPG) is a mixture of hydrocarbon gases including propane (C3H8) and butane (C4H10). The history of the LPG industry can be traced back to the beginning of the 20^th century, where LPG was used as a fuel for cooking and heating. Through the years, the industry evolved to become a major player in the energy industry as LPG applications expanded to automotive and domestic cooking.

Industry Trends

With the rising demand for cleaner fuels and government schemes for enhancing the use of LPG as a cooking fuel, the LPG industry has seen a robust growth over the last few years. International Energy Agency (IEA) estimates that the global LPG market will grow at a CAGR (compound annual growth rate) of 4.5% from 2020 to 2025, driven primarily from emerging-market demand.

• The global LPG market size was USD 245.6 billion in 2020 and is projected to reach USD 334.8 billion by 2025, at a CAGR of 4.5% during the forecast period.
• The Asia-Pacific led the LPG industry in 2020, holding the largest share and registering the highest demand for China, India and Japan.
• Industrial end-use segment is projected to grow at the highest rate, due to growing LPG demand as a fuel in industrial processes.

 

Aegis Vopak Terminals Limited: A Leading Player in India’s Tank Storage Industry

Origins and History

Aegis Vopak Terminals Limited (AVTL) is the result of a joint venture between Aegis Logistics Limited, an Indian listed conglomerate, and Vopak India BV, a Royal Vopak (Dutch MNC) company. The company was founded to offer tank storage and handling facilities to liquids and LPG gases in India. Its promoters, Aegis Logistics and Royal Vopak have a combined experience of more than 400 years in the storage industry.

AVTL was setup as a result of acquisition of LPG and liquid storage business of Aegis Logistics Limited in the year 2022. The firm also acquired terminals of other players like Friends Group and Nadella Agrotech Private Limited. These acquisitions were strategic in expanding and strengthening AVTL’s position in the Indian tank storage market. The company has since grown to become one of India’s premier third party tank storage providers.

Parent Company Background

Aegis Logistics Limited has a rich history dating back to 1956. The company was initially established as Atul Drug House Limited and underwent many name changes before being rechristened as Aegis Logistics Limited in 2000. Aegis, today, is a leading  Oil & Gas, and Chemical logistics company.

Competitive Landscape

The industry is competitive with many large players. Some of the competitors include IndianOil Petronas Private Limited (IPPL), IMC Limited (IMC), and Ganesh Benzoplast Limited (GBL).

Competitors at a Glance

• IndianOil Petronas Private Limited (IPPL): Key player in the LPG terminal sector, having a flexible facility to blend butane and propane in any proportion.
• IMC Limited (IMC): A port terminalling and infrastructure company, which operates in liquid bulk, and dry cargo port side terminals.
• Ganesh Benzoplast Limited (GBL): A company which started its operations as a chemicals manufacturer and diversified into storage of liquid chemicals/products.

Competitive Positioning

AVTL has the largest third-party owned and operated liquid storage terminal network of LPG and liquid terminals across in India and has a diverse portfolio of terminals strategically located along the west and east coast of India at five ports in operation. IPPL and IMC are close competitors and offer similar services. However, the company’s strategic location and infrastructure give it a competitive edge.

• Larger presence than IPPL: AVTL’s diversified network of terminals and strategic locations give it an advantage over IPPL.
• Less Diversified Revenue Stream Than IMC: IMC’s presence in dry-cargo and operations/maintenance gives it a more diversified revenue stream, which AVTL lacks.
• Larger terminal network than GBL: GBL, also, has a strong presence in storage of liquid chemicals/products. But, AVTL’s larger network of terminals, gives it an edge.

Company Strengths

The company offers a strong presence in the Independent tank storage terminal market in India and a well-diversified network of terminals across five major ports on the west and east coast of India. Being able to do this at scale is what gives the company an edge when addressing a diverse set of customers.

• Strategic Location: The company’s terminals are located in major ports, creating efficient and cost effective logistics.
• Diversified Network: Its presence across various ports and terminals forms a strong network and also reduces dependence on a single location.

Company Weaknesses

Despite its significant strengths, the company is not diversified in its revenue sources. Unlike some of its competitors, the company does not have a presence in dry cargo terminals or in operations and maintenance.

• Limited Revenue Streams: The reliance on a single type of business might impact its ability effectively face headwinds during market downturns.
• Strategic Dependence on Liquids: The focus of the company on liquids and LPG terminals could reduce their growth opportunities in other areas.

 

Financial Profile

The firm has seen revenues and profits rise materially, with total income and re-restated profit for the year showing smart growth.

Revenue Growth

Revenue from operations has increased significantly due to organic growth, the acquisition of more terminals as well as an increase in other operating revenue. By growing its capacity and infrastructure at its existing ports and commissioning new terminals, the company has been able to take advantage of economies of scale and leverage synergies with its existing facilities.

Profit Growth

The increase in turnover has translated into an increase in profits also. In addition, the increase in the profits is the result of good control of costs and efficiency improvement. Other income which includes interest income from fixed deposits and other income also added to the profit up tick.

Drivers of Revenue Growth

Higher LPG throughput volumes and the purchase of more terminals have driven revenue growth. The company’s value-added services too have allowed it to boost the revenue.

Figure: Financial Snapshot

(in INR million)	Period Ending Mar 31, 2022	Period Ending Mar 31, 2023	Period Ending Mar 31, 2024	Period Ending Dec 31, 2023	Period Ending Dec 31, 2024
Revenue from operations	–	3533.32	5617.61	3754.19	4641.81
PBT	-10.92	25.97	1210.18	473.65	1139.9
PAT	-10.92	-0.75	865.44	337.02	858.91

Source: RHP

Figure: Comparison of Select Metrics Vs Peers (FY24)

Metric	AVTL	Adani Ports and Special Economic Zone Limited	JSW Infrastructure Limited
Revenue from Operations (₹ million)	5617.61	267105.6	37628.9
EBIT (₹ million)	2919.06	133131.9	17974.9
Operating EBITDA (₹ million)	3975.37	158639.2	19645.6
Net Worth (₹ million)	11519.42	540432.5	81710.3
Total Debt (₹ million)	25864.17	462792.3	43806.8
Total Debt to Equity (times)	2.59	0.85	0.53

Source: RHP

 

Figure: Comparison of Select Metrics Vs Peers (FY 24)

Metric	AVTL	Adani Ports and Special Economic Zone Limited	JSW Infrastructure Limited
Static Capacity for Liquid Terminal Division (CBM)	1,497,483	N.A.	N.A.
Capacity Utilization % for Liquid Terminal Division	75.81%	N.A.	N.A.
Static Capacity for Gas Terminal Division (MT)	70,800	N.A.	N.A.
Throughput for Gas Terminal Division (MT)	1,588,727	N.A.	N.A.
Revenue Growth YoY (%)	58.99%	28.10%	17.78%
Operating EBITDA Margin (%)	70.77%	59.39%	52.21%
PAT Margin (%)	15.18%	28.73%	28.78%

Source: RHP