Aegis Vopak Terminals, the country's largest third-party tank storage company plans to raise Rs 3,500 crore via an initial public offering as it has filed draft red herring prospectus with the markets regulator SEBI.

The IPO comprises an entirely fresh issue by the company with no offer-for-sale component. Thus, the entire issue proceeds will go to the company.

The Mumbai-based tank storage company may consider a pre-IPO placement of up to Rs 700 crore before its IPO launch for subscription. If it undertakes pre-IPO placement, the said amount will be reduced from the fresh issue.

Aegis Vopak Terminals (AVTL) is a joint venture partnership between promoters Aegis Logistics (a listed oil, gas and chemicals logistics company) and Netherlands-based Vopak India BV (a part of Royal Vopak) which held 50.1 percent, and 47.31 percent stake in the company, respectively. Vopak is engaged in the business of financial holdings and storage in tanks.

Earlier this month, Aegis Logistics invested Rs 475 crore in Aegis Vopak Terminals via preferential allotment 2.02 crore equity shares at a price of Rs 235 per share. Due to this, the shareholding of Aegis Logistics in AVTL stands at 50.10 percent.

Public shareholders own 2.59 percent stake in the company, including 1.03 percent shares held by 360 ONE Special Opportunities Fund-Series 12.

Aegis Vopak Terminals is the largest third-party owner and operator of tank storage terminals for LPG and liquid products in terms of storage capacity in India, contributing to approximately 12.23 percent of the total national static capacity.

The company intends to utilise Rs 2,027.2 crore out of the net IPO proceeds for repaying debt, Rs 671.3 crore for capital expenditure towards contracted acquisition of the cryogenic LPG terminal at Mangalore, and the remainder funds for general corporate purposes.

The total debt on its books stood at Rs 2,546.7 crore as of September 2024. The IPO seems to be helping the company reduce debts considerably.

On the financials front, Aegis Vopak Terminals has reported net profit at Rs 86.5 crore for the fiscal 2024, against loss of Rs 0.08 crore in the previous fiscal, while the revenue during the same period jumped to Rs 561.8 crore, up from Rs 353.3 crore.

Profit in three-months period ended June 2024 stood at Rs 25.8 crore, increasing sharply from Rs 7.3 crore in the same period previous fiscal. Revenue during June 2024 quarter rose to Rs 154 crore, up from Rs 114.4 crore in the year-ago period.

Merchant bankers that handling the public issue are ICICI Securities, BNP Paribas, IIFL Capital Services, Jefferies India, and HDFC Bank.