Aegis Vopak Terminals, a subsidiary of Aegis Logistics Ltd., has raised Rs 1,260 crore from anchor investors, ahead of its initial share-sale that opens for public subscription.
Some of the investors include American Funds insurance, HDFC Mutual Fund, Smallcap World Fund, 360 one, Motilal Oswal, SBI General Insurance and Think India, according to a circular uploaded on BSE’s website on Friday.
As per the circular, Aegis Vopak Terminals has allotted 5.36 crore equity shares to 32 funds at the upper price band of Rs 235 per equity share. This aggregates the transaction size to Rs 1,260 crore.
The issue, with a price band of Rs 223 to Rs 235 per share, will open for public subscription on May 26 and conclude on May 28.
The company is valued at around Rs 26,000 crore at the upper end of the price band.
The IPO is entirely a fresh issue of equity shares worth Rs 2,800 crore with no offer-for-sale (OFS) component, according to the red herring prospectus (RHP). Previously, the IPO was planned to raise Rs 3,500 crore.
Proceeds worth Rs 2,016 crore will be used for payment of debt, Rs 671.30 crore to fund capital expenditure for the acquisition of a cryogenic LPG terminal at Mangalore and the remaining amount will be allocated for general corporate purposes.
Aegis Vopak Terminals owns and operates storage tank terminals across India. These terminals provide secure storage facilities for liquids like petroleum, vegetable oil, lubricants, chemicals, and gases such as LPG, propane, and butane.
The strategic location of the company’s terminals near key ports, closer to major shipping routes, offers competitive advantages, including faster evacuation through pipelines, rail, and road, lower delivery costs, and improved delivery times.
The terminalling industry relies heavily on the strategic location of storage terminals. Terminals near major shipping routes and well-connected ports gain a competitive edge by reducing last-mile delivery costs and ensuring faster delivery times.
ICICI Securities, BNP Paribas, IIFL Capital Services, Jefferies India and HDFC Bank are the book running lead managers to the issue. Shares of the company are expected to be listed on the bourses by June 2.
