Shares of this small-cap logistics company, which offers services for the oil, gas, chemicals, and petrochemical sectors, jumped over 3 percent on Monday morning following an Rs.300 crore investment in its subsidiary, Aegis Vopak Terminals Limited (ATVL), through a preferential allotment.
Price Movement
During Monday’s trading session, Aegis Logistics Ltd’s stock reached a peak of Rs.832.95 per share, marking an increase of over 14 percent from its previous close of Rs.808.15 apiece. The stock has since pulled back slightly and is now trading at Rs.819.30 each.
What happened
Aegis Logistics has invested Rs.300 crore in its subsidiary Aegis Vopak Terminals Limited (AVTL) through a preferential allotment of shares, increasing its ownership to 51.14 percent. The company announced that AVTL’s board has allotted 1.28 crore shares with a face value of Rs.10 each, at a premium of Rs.225 per share, totaling Rs.300 crore.
AVTL is a joint venture between Aegis Logistics and the Dutch company Royal Vopak. AVTL focuses on the storage and handling of chemicals, petroleum products, LPG, and other gases. For FY24, the company reported a turnover of Rs.417.93 crore, marking a 44 percent increase compared to the previous year, fueled by robust demand in the logistics and storage sectors for gas and chemical products.
Diverse Business Relationships
Aegis Logistics features a robust client portfolio that includes prominent companies such as Indian Oil, Hindustan Petroleum, Bharat Petroleum, Piaggio, Thyssen Krupp, Shell, Reliance, Godrej Consumer Products, JSPL, Nayara Energy, HUL, and Phillips Carbon Black Limited.
Gas and Liquid Terminals
Aegis Logistics develops, owns, and manages India’s premier network of tank terminals and distribution facilities while adhering to the highest safety and environmental standards. It has Liquid Terminals and Gas Terminals at Kandla, Pipavav, and Mumbai. Other liquid terminals of the company are at Mangalore, Kochi, Haldia, and JNPT.
Financial Performance
For the quarter ending September 2024, the company reported operational revenue of Rs.1,750 crore, reflecting a 42 percent increase from Rs.1,235 crore in Q1 FY24. Net profits grew to Rs.152 crore, representing a 1.3 percent rise from Rs.150 crore during the same period.
About the Company
Aegis Logistics Limited is a key player in India’s logistics industry, focusing on the oil, gas, and chemical sectors. The company has developed into one of the top integrated logistics providers in the country, especially recognized for its expertise in handling Liquefied Petroleum Gas (LPG) and bulk liquids.
Written by – Siddesh S Raskar
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