Aegis Vopak Terminals shares to list on Monday; should you buy, sell or hold?

Aegis Vopak Terminals shares to list on Monday.

Shares of Aegis Vopak Terminals Ltd, a subsidiary of Aegis Logistics, are set to debut on the exchanges on Monday after its initial public offering (IPO) garnered 2.09 times subscription by the close of bidding on Wednesday.

The IPO received bids for 14.43 crore shares against an offer size of 6.90 crore shares. While the Qualified Institutional Buyers (QIB) segment was subscribed 3.30 times, the response from Retail Individual Investors (RIIs) remained muted at 77 percent, and the Non-Institutional Investors (NIIs) category saw 56 percent subscription.

Earlier the company had mobilised Rs 1,260 crore from anchor investors. The price band for the issue was fixed at Rs 223–235 per share.

Aegis Vopak Terminals is India’s largest third-party owner and operator of tank storage terminals for LPG and liquid products, holding an estimated 25.53 percent of the country’s third-party liquid storage capacity.

However, market experts have flagged rich valuations. Based on annualised FY25 earnings, the company is valued at a price-to-earnings (PE) ratio of 235 times and EV/EBITDA of 57 times. On FY24 numbers, the PE multiple stands at 301x, with a post-issue market capitalisation of Rs 26,037.8 crore.

Listing-day performance is expected to be muted or with marginal gains, analysts said, citing the stretched valuation metrics.

"The company has achieved the lowest capex per MT and highest tank turns in the industry, which highlights its operational strength. While valuations are steep, the aggressive capacity expansion plans justify a long-term view," said Narendra Solanki, Head of Fundamental Research at Anand Rathi Wealth. “We recommend subscribing only for long-term investment post listing.”

Mahesh M. Ojha, AVP – Research and Business Development at Hensex Securities, echoed a similar sentiment. "Given its strategic role in India's energy infrastructure, the company holds strong long-term potential. However, listing gains may be limited. Short-term investors should be cautious," he said, advising investors to hold allotted shares rather than take fresh exposure on the day of listing.

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