Aegis Vopak Terminals plans Rs 2,800 crore IPO to reduce debt and expand operations
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ET Intelligence Group: Aegis Vopak Terminals (AVTL), which operates liquid and gas storage tank terminals across major ports in India, plans to raise ₹2,800 crore through fresh equity to repay debt and to fund capital expenditure. AVTL is a joint venture between Aegis Logistics, which owns 50.1%, and the Netherlands-based Vopak, which holds 47.4%. After the IPO, the promoter group holding will fall to nearly 87% from the current 97.4%. A higher interest outgo impacted net profit of the company in the past. This will change for the better once it repays debt by using the IPO proceeds worth ₹2,015.9 crore. The utilisation of the existing capacities is likely to improve as the number of customers increases. In addition, it is in the process of expanding terminal capacity across ports, which is expected to improve future profit. These factors indicate a high growth potential even though the financial performance in the past three years may l...