Aegis Vopak Terminals Ltd- IPO Reviews 2025, Analysis and Notes

Recommendation: Neutral

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Key Highlights

Company Background: Aegis Vopak Terminals Ltd (AVTL) is the largest Indian third-party owner and operator of tank storage terminals for liquefied petroleum gas (LPG) and liquid products by storage capacity, as of December 31, 2024. The company operates a network with a total capacity of ~1.50 million cubic meters for liquid products and ~70,800 metric tons for LPG. AVTL commands a 11.50% share in India’s LPG tank storage capacity and contributes 25.53% of third-party liquid storage. Strategically located across key ports on both the West and East coasts, AVTL’s infrastructure handles ~23% of India’s liquid and 61% of total LPG imports.

Market Opportunity: India’s refinery capacity is projected to grow from 260 MMTPA in FY24 to ~290–300 MMTPA by FY29, with IOCL, BPCL, and HPCL driving ~75% of the capacity expansion. As refineries become more integrated with petrochemical complexes, domestic LPG availability may decline. Consequently, LPG imports are expected to fulfill over 60% of India’s LPG demand, growing at a CAGR of 6–8% between FY24–29. AVTL is well-positioned to leverage this growth given its large-scale, strategically located terminals and growing reliance on imported fuels.

Strategic Terminal Network: As of December 31, 2024, AVTL manages 20 terminals—2 LPG storage and 18 liquid storage—across six ports. Terminals like Kandla, Pipavav, and Mundra have shown significant throughput growth between FY20–FY24. AVTL’s network covers key Indian coasts and is integrated with multimodal evacuation systems. Its Kandla and Pipavav terminals alone handled 3.67 MMT of LPG in FY24, equivalent to 20.10% of national imports.

Backed by Established Promoters: AVTL is a joint venture between Aegis (India) and Vopak India BV (Netherlands). Aegis is a listed Indian company specializing in logistics for oil, gas, and chemicals, while Vopak is a global leader in tank storage. This partnership provides AVTL with strong financial backing, global ESG and safety standards, and proven execution capabilities. Its client base includes oil marketing companies (OMCs), MNCs, specialty chemical companies, and commodity traders.

Financials: For the nine months ended December 31, 2024, AVTL reported:

• Revenue from operations: ₹464.1 crore (vs ₹375.4 crore in previous year)

• EBITDA: ₹341 crore (vs ₹252 crore); EBITDA Margin: 73.5%

• Net Profit: ₹86 crore (vs ₹34 crore in the prior period)

The strong margin profile reflects operating leverage and strategic asset placement.

Key Risks:

• Customer Concentration: In FY23 and FY24, top 10 customers accounted for 47.20% and 44.76% of revenue, respectively.

• Geographic Dependency: ~92.82% of revenue in the nine months ended Dec 2024 was generated from terminals on the west coast.

• Sector Exposure: Any regulatory shifts, delays in demand growth, or geopolitical risks affecting energy imports could impact performance.

Issue Highlights

Offer Structure

Lead Book Running Managers

• ICICI Securities Limited

• BNP Paribas

• IIFL Capital Services Limited

• Jefferies India Private Limited

• HDFC Bank Limited

Registrar to the Offer

• MUFG Intime India Private Limited

Research Analyst

Vinay Kalani
📧 vinay.kalani1@religare.com

Research Team

• Ajit Mishra – ajit.mishra@religare.com

• Abhijeet Banerjee – abhijeet.banerjee@religare.com

• Gaurav Sharma – gauravsharma2@religare.com

• Ashwani Harit – ashwani.harit@religare.com

• Divya Parmar – divya.parmar@religare.com

• Vinay Kalani – vinay.kalani1@religare.com

• Rajan Gupta – rajan.gupta1@religare.com

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