Asian Energy Services to merge with Oilmax Energy Private Limited

Asian Energy Services Limited (AESL) has received board approval for the merger by absorption of Oilmax Energy Private Limited (OEPL). This strategic move, which also follows the recent acquisition of UAE-based Kuiper Group, aims to establish a larger, stronger entity capable of bidding for integrated projects across field development, operations and maintenance (O&M), well drilling, and related services, while expanding internationally. Oilmax brings a diversified portfolio of low-cost, low-risk discovered assets and a quartzite block in Uttarakhand, contributing producing and development assets, while Asian Energy provides expertise in seismic, EPC, O&M, and enhanced recovery.

The merger is expected to take approximately 12 months to complete, pending approvals from stock exchanges, SEBI, NCLT, shareholders, creditors, and other regulatory authorities. The swap ratio has been determined by an independent SEBI-registered valuer, Bansi S. Mehta Valuers LLP, based on multiple methodologies, including risk-adjusted DCF for Oilmax's producing and mineral assets. Post-merger, Oilmax's shareholding in AESL will be cancelled, with new AESL shares issued directly to Oilmax shareholders.

The merged entity is projected to have a net cash balance sheet, strong EBITDA margin, healthy ROCE and ROE for FY '25, and financial flexibility to fund future growth. The company anticipates reduced working capital days, as Oilmax operates as a negative working capital business. The promoter shareholding in the merged entity, on a fully diluted basis, is expected to drop to 47.3%.