Synopsis: Shares fell 14% after the board approved a merger with Oilmax Energy, causing equity dilution and reduced promoter holding. Despite strong Q1 growth, robust order book, and marquee clients, investors reacted cautiously to restructuring, highlighting near-term volatility but long-term growth potential.
The shares of the Oil Equipment & Services provider plummeted up to 14 percent in today’s trading session after the company’s board approved a merger by absorption of Oilmax Energy Private Limited.
With a market capitalization of Rs 1,561.06 crore, the shares of Asian Energy Services Ltd were trading at Rs 348.65 per share, decreasing around 9.82 percent as compared to the previous closing price of Rs 386.60 apiece.
Merger
The share of Asian Energy Services Ltd has seen bearish movement after the board approved a merger by absorption of Oilmax Energy (OEPL) into itself. Under the scheme, OEPL will be dissolved without winding up, and all its assets, liabilities, rights, and approvals will vest in AESL.
As part of the arrangement, OEPL’s existing stake in Asian Energy will be cancelled. In return, AESL will issue fresh shares to OEPL’s shareholders based on a pre-decided share-exchange ratio. Oilmax, which currently holds a 60.83% stake in Asian Energy, will consolidate its interests through this restructuring.
Moreover, the merger will consolidate operations under a single listed entity, aiming to unlock synergies and strengthen business efficiency. While the scheme is expected to be effective within 12 months, promoter holding will decline from 65% to 47%, reflecting significant equity dilution of nearly 46%. This shift underscores broader shareholder participation and potential for enhanced long-term growth.
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Financial & Operational Highlights
The company delivered strong growth in Q1FY26, with revenue surging 92% to Rs 115.37 crore from Rs 60.19 crore and net profit jumping 172% to Rs 5.63 crore. This sharp rise highlights robust demand, operational efficiency, and improved margins, reflecting a solid momentum in financial performance.
The company strengthened its order book with a ₹772 crore contract from Vedanta and a ₹46 crore seismic project from Sun Petrochemicals. Total orders now stand at ₹1,688 crore, driven largely by O&M services. Additionally, the acquisition of Kuiper Group is set to enhance service offerings and expand global market reach.
Asian Energy Services has a diversified order book across infra, O&M, and seismic verticals. O&M dominates with a 75.2% share worth ₹1,270 crore, driven by projects in Gujarat, Assam, and Rajasthan. Infra/CHP contributes 19.3% at ₹327 crore, while seismic adds 5.5% with ₹92 crore, ensuring strong revenue visibility.
Asian Energy Services partners with leading industry players, showcasing its strong client base. The company serves majors like ONGC, Vedanta, Sun Petrochemicals, Oil India, Coal India, AGCL, and Invenire Energy. This trusted association with top energy and resource companies highlights its credibility, robust execution capabilities, and long-term growth potential across critical sectors.
Asian Energy Services Limited is an India-based service provider to the energy and minerals sector. The Company provides services that include geophysical data acquisition (seismic), turnkey drilling, production facility construction (EPC), and facility operation and maintenance.
Written by Abhishek Singh
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