Aegis Vopak Terminals, Schloss Bangalore IPOs get muted response on Day 1; will issues gain momentum on second day?

The primary market has gained momentum in terms of fresh initial public offering (IPO) activities, but investor sentiment remains weak as indicated by muted responses to the issues of Leela Palaces Hotels & Resorts operator Schloss Bangalore and Aegis Vopak Terminals. The Schloss Bangalore IPO was subscribed by just 0.06 times on Day 1, while the issue of Aegis Vopak Terminals was booked 0.26 times on the first day of bidding.

The current lull in the IPO market can be attributed to multiple headwinds such as global economic uncertainty amid a trade war, inflationary pressures, geopolitical tensions, weak corporate earnings, and the subdued performance of newly listed stocks.

According to exchange data, the Leela Hotels IPO received bids for over 28.75 lakh shares, as against the offer size of 4.66 crore shares. The portion set aside for qualified institutional buyers (QIBs) was subscribed 0.03 times, while non-institutional investors (NIIs) and retail quotas received 0.03 times and 0.20 times bidding, respectively.  

The public issue of Schloss Bangalore has received a “Subscribe” rating from most brokerages such as Anand Rathi, Bajaj Broking, BP Equities, Mehta Equities, Canara Bank Securities, and many others.

In a similar trend, the IPO of Aegis Vopak Terminals, a joint venture between Aegis Logistics of India and Royal Vopak of the Netherlands, got bids for 1.77 crore shares, as against the offer size of 6.90 crore shares. The quotas for QIBs, NIIs, and retail investors were booked 0.39 times, 0.03 times, and 0.19 times, respectively.

The three-day IPOs of Schloss Bangalore and Aegis Vopak will close on May 28, while the allotment of shares to eligible applicants is expected to be finalised on May 29. The shares of both companies are slated to be listed on the BSE and the NSE on June 2, 2025.

In the case of Schloss Bangalore, the price band has been fixed at ₹413-435 per share for its ₹3,500 crore IPO, valuing the company at around ₹10,155 crore. The issue is a combination of a fresh issue of 5.75 crore shares amounting to ₹2,500 crore, and an offer for sale of 2.30 crore shares worth ₹1,000 crore by selling shareholders.

Ahead of the opening of the IPO, the Brookfield-backed luxury hotel chain operator had last week raised ₹1,575 crore from anchor investors, including domestic and global ones, at upper end of the price band of ₹435 per share.

Meanwhile, Aegis Vopak Terminals proposes to raise ₹2,800 crore via the IPO route, which is entirely a fresh issue of 11.91 crore shares. The chemicals and oil storage and logistics solutions provider has set a price band of ₹223-235 per share and the minimum lot size for an application is 63. The company is valued at around ₹26,000 crore at the upper end of the price band.

A subsidiary of Aegis Logistics , the company last week raised ₹1,260 crore from anchor investors by allotting 5,36,17,021 equity shares to 32 funds at the upper price band of ₹235 per equity share.

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