Jio Prepares for Largest Ever Indian IPO, Aegis Vopak Gets the SEBI Nod Activities in the market keep the investors interested for the near future, with Aegis Vopak securing the SEBI nod and Jio reportedly gearing up for the largest-ever Indian IPO.
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The Indian public market is experiencing an IPO-less week, in what has been a booming period for companies in the Indian public market. However, activities in the market keep the investors interested for the near future, with Aegis Vopak securing the SEBI nod and Jio reportedly gearing up for the largest-ever Indian IPO.
Aegis Vopak Terminals Limited has been given the nod by the market regulator, Securities and Exchange Board of India (SEBI), to go ahead with the company's initial public offering (IPO).
Upon listing, the company plans to raise INR 3,500 crore. Aegis Vopak had submitted the necessary paperwork to SEBI in November 2024.
The company is a joint venture (JV) between Aegis Logistics and Vopak India BV. Aegis currently holds a 50.1 per cent stake in the partnership, whereas the other promoter, Vopak India BV, holds 47.30 per cent in the JV. The conglomerate is a third-party owner and operator of storage facilities in India, dealing in liquefied petroleum gas (LPG) and other liquid products. According to a CRISIL report from 2024, it is the largest of its kind in the country.
The IPO is reported to include a fresh issue of equity shares with a face value of INR 10 each. The company has disclosed that the IPO will proceed post-necessary approvals and assessment of market conditions.
According to Aegis Vopak, the company will utilize the proceeds from the IPO towards full payment or pre-payment of all or part of outstanding loans, financing for capital expenses for the acquisition of a cryogenic LPG terminal in Mangalore, and other general corporate expenditures.
The book running lead managers (BRLMs) for the issue are ICICI Securities Limited, BNP Paribas, IIFL Capital Services Limited (previously known as IIFL Securities Limited), Jefferies India Private Limited, and HDFC Bank Limited.
Biggest Indian IPO on the Cards
Reliance Jio Infocomm Ltd, the telecom division of Mukesh Ambani-led Reliance Industries, is reportedly eying India's largest-ever IPO to date, with the company aiming to raise close to INR 40,000 Crore (USD 4.8 billion). The listing is set to surpass previous records set by the likes of Hyundai Motors and LIC in the Indian public market.
The subsidiary of Jio Platforms Ltd is also targeting a company valuation of approximately USD 120 million (INR 10 lakh crore) before the offering, reports indicate.
Currently, Jio is the market leader in the Indian telecom sector, with 460 million wireless subscribers as of October 2024. For FY 2023-24, the company posted an operating revenue of INR 1,00,119 crores, an increase of 10.3 per cent Y-o-Y from previous year's revenue of INR 90,786 crores. Jio is yet to officially announce its plans to go public.
India Amidst Global Tensions
The world is in the middle of a global tariff war, spurred by the US and reactions from China, the two biggest economies of the world.
Sundar Kewat, Technical and Derivatives Analyst, Ashika Institutional Equity – Ashika Stock Broking said that the Nifty opened on a flat note today, mirroring the subdued global cues, with Wall Street continuing to remain flat to negative.
"On the sectoral front, strength was observed in Banking, Media, Oil & Gas, Financial Services, and Energy, while Automobile and IT stocks underperformed. Globally, investor sentiment remained fragile, weighed down by renewed concerns over escalating US-China trade tensions," said Kewat.
