Aegis Vopak terminal is the largest Indian third-party owner and operator of tank storage terminals for liquified petroleum gas (LPG) and liquid products in terms of storage capacity, as of December 31, 2024. It own and operate a network of storage tank terminals having an aggregate storage capacity of approximately 1.50 million cubic meters (MCM) for liquid products and 70,800 tonne of static capacity for LPG, and offer secure storage facilities and associated infrastructure for liquids such as petroleum, vegetable oil, lubricants, and various categories of chemicals and gases such as LPG (including propane and butane). The company is the largest storage capacity in India’s LPG tank storage sector, contributing to approximately 11.50% of the total national static capacity. In terms of storage of liquid products, it is the largest third-party tank storage company in India, contributing to approximately 25.53% of India’s third-party liquid storage capacity.

As of December 31, 2024, it has a diversified network of terminals spread strategically across five key ports in operation on the West and East coast of India. These key ports together handle approximately 23.00% of liquid and 61.00% of total LPG import volumes in India. At these terminals, it own and operate facilities for different functions including product storage tanks, firefighting facilities, self-owned pipelines connected to jetty, ship loading and unloading infrastructure, as well as infrastructure for product evacuation by ship, rail, road and pipelines.

Aegis Vopak terminal is established as a joint venture between Aegis Logistics Limited (Aegis), which owns 50.1% and Vopak India BV, a part of Royal Vopak (Royal Vopak) which holds 47.4%. One of its Promoters, Aegis, is a listed Indian conglomerate providing sourcing, storage, distribution, storage and third-party logistics services in the oil, gas, and chemicals sector. Aegis is India’s largest third-party LPG handler and handles more than 20% of India’s LPG imports as of December 31, 2024. Further, as of December 31, 2024, Aegis operates a liquid terminal with a storage capacity of 275,000 cubic metres, and owns and operates a 21,000 tonne cryogenic LPG terminal capable of handling a throughput of 1.5 million metric tons (mmt) per annum (mmtpa) in Mumbai, Maharashtra.

The other Promoter, Vopak India BV, is part of Royal Vopak, a listed company headquartered in the Netherlands and is among the world’s leading tank storage companies, with an experience of over 400 years in the storage industry. Royal Vopak has a network of 77 terminals in 23 countries with an aggregate storage capacity of approximately 35.40 million cubic meters as of December 31, 2024 along major trade routes. It is focused on storage and handling of gases such as LPG, in addition to ammonia, as well as liquid products such as crude oil, petroleum, oil and lubricants, chemicals and biofuels.

The company categorize its business into two key segments - Gas terminal division and Liquid terminal division. The Gas terminal division primarily involves storage and handling of LPG (including propane and butane) and the Liquid terminal division involves storage and handling of liquid products, including petroleum, chemicals, and vegetable oils. Gas terminal division formed 45.64% of total revenues for 9MFY25 while Liquid terminal division formed 54.36%.

The company currently own and operate two LPG storage terminals across two Indian ports, and 18 liquid storage terminals across six Indian ports, where it handle coastal movement of goods along with imports and exports. Its terminals, located in the ports of Haldia, West Bengal (Haldia Terminal), Kochi, Kerala (Kochi Terminal), Mangalore, Karnataka (Mangalore Terminal), Pipavav, Gujarat (Pipavav Terminal), Kandla, Gujarat (Kandla Terminal), and Navi Mumbai, Maharashtra (JNPA Terminal) have an aggregate storage capacity of approximately 1.5 million cubic meters for liquid products and 70,800 tonne of static capacity for LPG.

The company ongoing capacity expansion at New Mangalore in Karnataka and Pipavav in Gujarat is expected to increase its LPG storage capacity by 130,000 tonne during fiscal 2026, leading to LPG storage capacity of 200,800 tonne. Further, it has recently expanded its storage capacity for liquid products by approximately 101,900 cubic meters at JNPA in Navi Mumbai, Maharashtra.

Aegis Logistics Limited, Huron Holdings Limited, Trans Asia Petroleum Inc, Asia Infrastructure Investment Ltd., Vopak India B.V. and Koninklijke Vopak N.V. are the Promoters of the company.

Aegis Vopak Terminal Vs Promoter Aegis Logistics

Aegis Logistics, established in 1956 and headquartered in Mumbai, India, is an integrated oil, gas, and chemical logistics company. The company specialises in the import and distribution of liquefied petroleum gas (LPG) and provides storage and terminalling services for oil, gas, and chemical products. Its infrastructure includes large-scale LPG import terminals at major ports such as Mumbai, Haldia, Pipavav, Kochi, Kandla, and Mangalore. The company operates through two business segments: the Gas Terminal Division and the Liquid Terminal Division. The Gas Terminal Division, which contributed 92.20% of revenue in FY24, manages the import, storage, and distribution of LPG and propane for oil marketing companies. The Liquid Terminal Division, accounting for 7.80% of revenue in FY24, handles the storage and transportation of bulk liquids,including petroleum, petrochemicals, and chemical. Aegis Logistics net sales fell 3% to Rs 5058.75 crore in 9MFY25 while net profit increased 2% to Rs 381.7 crore.

Aegis Vopak Terminals is a joint venture between Aegis Logistics and Royal Vopak of the Netherlands. AVTL specializes in tank storage infrastructure, operating a network of 20 tank terminals across six key Indian ports: Kandla, Pipavav, JNPT (upcoming), Mangalore, Kochi, and Haldia. It own and operate a network of storage tank terminals having an aggregate storage capacity of approximately 1.50 million cubic meters (MCM) for liquid products and 70,800 tonne of static capacity for LPG, and offer secure storage facilities and associated infrastructure for liquids such as petroleum, vegetable oil, lubricants, and various categories of chemicals and gases such as LPG (including propane and butane). The company categorize its business into two key segments - Gas terminal division and Liquid terminal division. Gas terminal division formed 45.64% of total revenues for 9MFY25 while Liquid terminal division formed 54.36%. Aegis Vopak Terminals net sales rose 24% to Rs 464.18 crore in 9MFY25 while net profit surged 155% to Rs 85.89 crore.

The Offer and the Objects

The offer comprises of fresh issue of up to 119148936 equity shares at the upper price band of Rs 235 and 125560538 equity shares at the lower price band of Rs 223 aggregating Rs 2800 crore.

The company proposes to utilise the net proceeds from the issue towards repayment or prepayment of all or a portion of certain outstanding borrowings availed by the company amounting Rs 2015.95 crore, funding capital expenditure towards contracted acquisition of the cryogenic LPG terminal at Mangalore amounting Rs 671.3 crore and the balance towards general corporate purposes.

As on March 31, 2025, the total outstanding borrowings of the company are Rs 2474.172 crore. Total capex of the acquisition of the cryogenic LPG terminal at Mangalore is Rs 968 crore and the expected date for commercial operations is Rs June 2025. Sea Lord Containers, a wholly owned subsidiary of Aegis Logistics Limited and forms part of Promoter Group is required to develop the project.

Strengths

The company holds 11.5% of India’s total LPG tank storage capacity and controls 26.64% of third-party liquid storage capacity, making it a dominant player in the sector

The company has demonstrated a proven track record in infrastructure expansion and throughput efficiency, with potential for growth through acquisitions and new terminal developments

The company operations are supported by two of its Promoters, Aegis and Vopak India BV, who provide it a deep understanding of the industry globally and is able to leverage their industry experience, client relationships and infrastructure network to grow operations by diversifying into storage of new gases and products while maintaining cost efficiencies.

The company benefit from synergies with one of its Promoters, namely Aegis, who leverages its terminal network. Aegis utilizes its terminals for its imports, where it imports LPG in bulk thereby contributing to consistent revenue for the company.

The company client base spans various industries and sectors, including traders, manufacturers, chemicals and fuel marketing companies across private and public sectors, as well as local and international businesses. In addition, as of December 31, 2024, 47.14% of its customers used multiple terminals to efficiently access markets in various regions.

India is poised to play a pivotal role in the global energy transition through various strategic initiatives. One such initiative is the establishment of a manufacturing hub for green hydrogen and its derivatives such as green ammonia and green methanol. As these new energy sources gain traction, the demand for specialized storage facilities will increase significantly.

In addition to the robust and growing demand for LPG from the domestic cooking segment, adoption of LPG is expected to increase for industrial applications, driven by the Government’s strong push to reduce carbon dioxide emission from liquid fuels. Household segment and robust industrial consumption are expected to raise overall LPG demand to 36-37 MMTPA by Fiscal 2029, at a CAGR of 3-4%.

The company anticipate a substantial need for expanded storage infrastructure at port locations. To this end, it has conceptualized Project GATI (Gateway Access to India) to capitalize on emerging market opportunities and to strategically invest in storage solutions and infrastructure necessary to address the market‘s evolving demands. This initiative is designed to align with and support India’s ambitious strategic goals in the energy sector. The infrastructure that it offer will be critical to support the import and export activities associated with both traditional and new energy products.

Weaknesses

The company is a joint venture between Aegis Logistics Limited and Vopak India BV. Any decline in the relationship or conflicts between these promoters could disrupt business operations and adversely affect financial performance and cash flows

A significant majority of the company’s terminals are located on the west coast of India, with over 90% of revenue generated from this region. This geographic concentration exposes the company to regional risks that could impact operations and financial results if adverse developments occur in that area.

Some lease agreements for terminals, particularly at the Kandla terminal, have expired and have not been renewed. Non-renewal or inadequate legal formalities related to leases could materially impact the company’s ability to operate at these locations

Approximately 42.5% of the company’s revenue is derived from the oil and gas sector, making it sensitive to sector-specific risks including demand fluctuations and regulatory changes

The operation of terminal services can be adversely affected by many factors, such as the breakdown of equipment, accidents, fatalities, labour disputes, and hazards associated with liquids and gases such as petroleum, oil and lubricants, LPG and various categories of chemicals, including fires, explosions, chemical spills or other discharges or releases of toxic or hazardous substances or gases, storage tank leaks, and other environmental risks.

Promoter, Aegis, and certain of its group companies are engaged in a similar line of business as the Aegis Vopak terminal and may compete with it.

The company has a very limited operating history.

The company operations are subject to environmental, health, safety and employment laws and regulations. Its failure to comply with such regulations could adversely affect business, results of operations, financial condition and cash flows.

The company require certain licenses, permits and approvals in the ordinary course of business, and the failure to obtain or retain them in a timely manner may adversely affect business, results of operations, cash flows and financial condition.

Technology failures could disrupt its operations and adversely affect business operations and financial performance. Further, changes in technology may render its current technologies obsolete or require it to make substantial capital investments

The company expect its industry to continue to be highly competitive.

Valuation

Net sales increased 24% to Rs 464.18 crore in 9M FY2025 compared to 9M FY2024. The OPM rose 650 bps to 73.5%, leading to 36% increase in operating profit to Rs 341.39 crore. OI increased 129% to Rs 11.97 crore. Interest cost rose 16% to Rs 144.77 crore. Depreciation cost went up 12% to Rs 94.6 crore. PBT was up141% to Rs 113.99 crore. Tax expenses rose 106% to Rs 28.1 crore. As a result, net profit jumped 155% to Rs 85.89 crore.

Net sales increased 59% to Rs 561.76 crore in FY2024 compared to FY2023. The OPM improved 590 bps to 70.8%, leading to 73% improvement in operating profit to Rs 397.54 crore. OI increased 214% to Rs 8.36 crore. Interest cost rose 24% to Rs 170.89 crore. Depreciation cost went up 25% to Rs 113.99 crore. PBT stood at Rs 121.02 crore compared to Rs 2.6 crore. Tax expenses was Rs 34.47 crore compared to Rs 2.67 crore. As a result, net profit stood at Rs 86.54 crore compared to loss of Rs 8 lakh.

The TTM EPS on post-issue equity works out to Rs 1.3. At the upper price band of Rs 235, TTM P/E is 181.

As of 22 May 2025, its listed peers such as Adani Ports and Special Economic Zone trades at TTM P/E of 29.3, JSW Infrastructure trades at TTM P/E of 45.7 and Aegis Logistics trades at TTM P/E of 52.8

For FY2024, Aegis Vopak Terminal Ebitda margin and ROE stood at 71.2% and 8.7% compared to 61.6% and 14.9% for Adani Ports and Special Economic Zone respectively, 55.4% and 14.1% for JSW Infrastructure and 18.5% and 18.1% for Aegis Logistics.