Aegis Logistics JV Approves ₹660 Crore NCD Issuance, Reports Strong Q2 Profit Growth

Aegis Logistics Limited India, operating in a strategic joint venture with Royal Vopak of the Netherlands, has announced the approval for issuing Non-Convertible Debentures (NCDs) amounting to ₹660 crore. These NCDs will have a tenure of three years and carry an interest rate of 6.92%. The company plans to list these debentures on the National Stock Exchange (NSE).

Additionally, the filing specifies that if the issuer defaults on interest payments or redemption on the due dates, an additional interest of 2% per annum over the coupon rate will be levied for the period of default.

The company, which has its registered office in Vapi, South Gujarat, manages a network of 20 tank terminals across major Indian ports like Haldia, Kandla, Pipavav, JNPT (upcoming), Mangalore, and Kochi. With a substantial storage capacity for liquids (1.7 million cubic meters) and LPG (201K metric tons), Aegis Logistics plays a vital role in the storage and movement of various products including LPG, oil, liquid chemicals, petrochemicals, gases, bitumen, and vegetable oils.

In its financial performance update for the second quarter of the current financial year, Aegis Logistics reported a significant 145% increase in profits, reaching ₹54 crore. The revenue from operations also saw a healthy growth of 26%, amounting to ₹187 crore.

Impact: The NCD issuance provides a substantial funding avenue for Aegis Logistics, likely to support its operational expansion and capital expenditure plans. The strong quarterly financial results, marked by a significant rise in both profit and revenue, are expected to boost investor confidence and reflect positively on the company's operational efficiency and market position. The proposed listing on the NSE aims to enhance liquidity for these debentures.

Difficult terms: Non-Convertible Debentures (NCDs): These are debt instruments issued by companies that cannot be converted into equity shares. They offer a fixed rate of interest over a specified period. Coupon Rate: The interest rate that a bond or NCD pays to the bondholder, usually expressed as a percentage of the face value of the bond.