(Reuters) - Dutch tank storage firm Vopak on Wednesday confirmed it plans to proceed with an initial public offering (IPO) for its Indian joint venture AVTL.

"The private placement we announced yesterday is a precursor for the IPO," group CFO Michiel Gilsing told Reuters, adding that he sees "massive potential in terms of trading at the Indian Stock Exchange".

The company is now working on a draft prospectus to submit to Indian authorities and considering further shares issuance in the coming years, in conformity with Indian market regulations, he said.

Vopak on Tuesday announced an 88 million euro ($95 million)agreement for the disposal of a 3.4% stake in its joint venture with Aegis.

The transaction will support deleveraging as well as funding of growth projects in the region, it said in a news release.

($1 = 0.9225 euros)

(Reporting by Alban Kacher; editing by Jason Neely)