Aegis Vopak Terminals Share Price Surges 10% Post Weak Stock Market Debut

Market Performance

On its listing day, Aegis Vopak Terminals' share price defied market expectations by registering a sharp recovery after a weak start.

• The stock is listed at ₹220 on NSE, marking a 4.38% discount from its issue price of ₹235.
• Despite the lower opening, the share price surged over 10% by mid-session.
• As of 11:55 AM, Aegis Vopak Terminals shares traded at ₹242 apiece.

This positive movement reflects investor interest despite the overall market trend and a subdued IPO response.

Main News

The debut of Aegis Vopak Terminals Limited (AVTL) in the Indian stock market comes after the conclusion of its ₹2,800 Crore initial public offering (IPO).

The three-day subscription window from May 26 to May 28 saw moderate interest:

• Total subscription stood at 2.20 times the number of shares offered
• Investors bid for 14.43 Crore shares against an available 6.55 Crore shares

Segment-wise IPO Subscription:

• Retail Investors: 0.81x
• Non-Institutional Investors (NIIs): 0.41x
• Qualified Institutional Buyers (QIBs): 3.47x

The stronger participation from institutional investors balanced out weaker demand from other segments.

Company Details

Aegis Vopak Terminals Limited (AVTL) provides third-party tank storage services for various bulk liquids and gases.

IPO Details:

• Issue Size: ₹2,800 Crore
• Type: Entirely fresh equity issue
• Shares Offered: 11.91 Crore
• Minimum Retail Lot: 63 shares (₹14,049 minimum investment)

Before the IPO, the company raised ₹1,260 Crore from anchor investors, signaling institutional confidence.

Utilization of IPO Proceeds:

• Repayment/Prepayment of select loans
• Capital Expenditure: Including a cryogenic LPG terminal purchase in Mangalore
• General Corporate Purposes

Key Parties Involved:

• Lead Managers: ICICI Securities, BNP Paribas, IIFL Capital Services, Jefferies India, HDFC Bank
• Registrar: MUFG Intime India Pvt Ltd (Link Intime)

Summary of the Article

Despite a weak listing, Aegis Vopak Terminals' share price rallied over 10% during its market debut on June 2. The IPO witnessed modest overall subscription but saw strong interest from institutional investors. With ₹2,800 Crore raised through a purely fresh issue, the company plans strategic expansion and loan reduction.

The early surge in Aegis Vopak Terminals' share price showcases robust market sentiment and investor confidence in the company's long-term infrastructure-focused business model.