Just days after confirming plans for a Rs 4,000 crore IPO of logistics joint venture Aegis Vopak Terminals (AVTL), Aegis Logistics has invested Rs 300 crore in the subsidiary through a preferential allotment of shares, raising its stake to 51.14%.
Aegis Logistics said, "The Board of Aegis Vopak Terminals Limited (AVTL), a material subsidiary has allotted 1.28 crore shares of face value Rs 10/- each at a premium of Rs 225/- per share for cash for the total consideration aggregating to Rs 300 crore through Preferential Allotment to the company."
Aegis Vopak Terminals (AVTL), is a joint venture between Aegis Logistics and Dutch-based Royal Vopak. On October 30, Vopak had confirmed plans of an initial public offering (IPO) for its Indian joint venture. "The private placement we announced yesterday is a precursor for the IPO," group CFO Michiel Gilsing recently told Reuters, adding that he sees "massive potential in terms of trading at the Indian Stock Exchange".
Aegis Logistics is in the business of storage and handling of petrochemicals, with a market capitalisation of Rs 28,000 crore. Shares of Aegis Logistics are higher by 4% in the last one month, in an otherwise weak market. The management said it plans to drive the next phase of growth through its subsidiary.
For the September quarter, Aegis Logistics recorded its highest-ever revenue and EBITDA, along with record logistics volumes.
AVTL is engaged in storage and handling chemicals, petroleum products, LPG and other gases, and the company's FY24 turnover was Rs 417.93 crore, growing 44% on year on robust demand in logistics and storage for gas and chemical products. With the proposed IPO, AVTL aims a become a prominent logistics and energy infrastructure player in Asia. The company has laid out ambitious expansion goals, particularly for enhanced gas storage and logistical infrastructure, which it intends to finance through its upcoming IPO.
The Street will be closing watching as to what valuation does AVTL command, after the IPO announcement.
Aegis Group claims to be now the "most important tank terminal" operator in several of ports of India. "We expect that this consolidation of the industry will continue over the years to come."
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