Aegis Vopak Terminals Limited , a leading provider of liquid and gas storage solutions in India, has announced a significant financial move alongside its latest quarterly results. The company's board has given the green light for the issuance of Non-Convertible Debentures (NCDs) worth ₹660 crore, marking a strategic step in its financial planning.

NCD Issuance Details

The board of Aegis Vopak Terminals has approved the allotment of 66,000 Redeemable, Senior, Rated, Listed, Secured, Taxable Non-Convertible Debentures. Each debenture is valued at ₹1,00,000, culminating in a total issue size of ₹660 crore. This private placement is set to be listed on the National Stock Exchange (NSE).

Key features of the NCDs include:

• Tenure: 3 years (Maturity date: November 7, 2028)
• Interest Rate: 6.92% per annum, payable quarterly
• Principal Repayment: Bullet payment at maturity
• Security: Backed by tangible moveable fixed assets at Mangalore Port and the company's cash flows, receivables, and bank accounts

Q2 Financial Highlights

Alongside this development, Aegis Vopak Terminals has released its financial results for the second quarter, showcasing robust growth:

The company's performance demonstrates strong growth across all key financial metrics. The revenue split between gas and liquid terminalling segments stands at 43.5% and 56.5% respectively for the current quarter.

Operational Highlights

• Commissioned new LPG terminals at Pipavav (48,000 MT) and Mangalore (82,000 MT)
• Ongoing expansion at JNPA with ₹1,675 crore investment for new liquid and LPG capacities
• Construction of India's first independent ammonia terminal (36,000 MT) at Pipavav
• On track to reach a capex of USD 1.2 billion by FY27 and USD 5 billion by 2030

Management Commentary

Raj K. Chandaria, Chairman & Managing Director, stated, "Our Q2 results reflect the strength of our business model and the growing demand for our storage solutions. The approval for NCD issuance will provide us with the necessary capital to fuel our ambitious expansion plans and reinforce our position as India's leading third-party liquid and gas storage provider."

Aegis Vopak Terminals continues to capitalize on India's expanding energy logistics sector, with strategic investments in capacity and infrastructure. The company's focus on diversification and expansion across key ports positions it well for sustained growth in the coming years.

Aegis Vopak Terminals , a leading player in India's liquid and gas storage infrastructure sector, is embarking on an ambitious expansion drive, with plans to significantly boost its capacity and reach across the country.

Major Expansion Plans

The company has announced a substantial ₹1,675 crore project at Jawaharlal Nehru Port Authority (JNPA), marking a significant step in its growth strategy. This expansion includes:

• A new 318,100 cbm liquid capacity terminal
• A 77,286 MT LPG terminal
• A 35,000 MT per annum bottling plant

Additionally, Aegis Vopak is expanding its footprint with new LPG terminals at Pipavav (48,000 MT) and Mangalore (82,000 MT), both of which are now revenue-accretive.

Diversification and Future-Ready Infrastructure

In a move to diversify its portfolio, the company is constructing India's first independent ammonia terminal at Pipavav, with a capacity of 36,000 MT. This facility is expected to be operational before Q1 FY27, positioning Aegis Vopak at the forefront of emerging market trends.

Ambitious Capital Expenditure Plans

Aegis Vopak Terminals aims to reach a capital expenditure of $1.2 billion (approximately ₹10,000 crore) by FY27, with plans to further expand to $5 billion by 2030. The company plans to maintain a prudent leverage ratio of 0.6x, indicating a balanced approach to growth and financial stability.

Financial Performance

The company's Q2 results reflect strong growth:

Strategic Acquisitions and Capacity Enhancement

Aegis Vopak has also made strategic moves to consolidate its position in the LPG market:

• Acquired a 75% stake in Hindustan Aegis LPG Ltd (HALPG), adding 25,000 MT LPG capacity
• This acquisition provides an entry into the East Coast market at Haldia
• The company's total LPG capacity now stands at 225,800 MT

Outlook

With its extensive expansion plans and strategic acquisitions, Aegis Vopak Terminals is positioning itself as a key player in India's growing energy logistics sector. The company's focus on diversification, including entry into the ammonia segment, and its pan-India network expansion strategy suggest a strong growth trajectory in the coming years.