Asian Energy Services Limited (AESL), a prominent integrated service provider in the energy and mining sectors, has announced two significant developments: a substantial contract award and a credit rating update.

Major Contract Award

AESL, along with its joint venture partner, has been awarded a contract worth approximately ₹459 crore from Mahanadi Coalfields Limited for the establishment of a Coal Handling Plant in Odisha. This marks AESL's largest Coal Handling Plant (CHP) order to date.

Contract Details

The contract involves:

• Pre-Engineered Turnkey Execution
• Design and Supply
• Erection and Commissioning
• Trial Run and Testing
• Operations and Maintenance during the Defect Liability Period (DLP)

The project is set to be executed over a span of seven years.

Financial Implications

Credit Rating Update

In addition to the contract award, AESL received a credit rating update from CRISIL Ratings Limited:

• Total bank loan facilities were enhanced to ₹282.50 crore from ₹37.50 crore.
• CRISIL maintained the long-term banking facilities rating at CRISIL BBB/Watch Developing.
• A short-term banking facilities rating of CRISIL A2/Watch Developing was assigned.
• Both ratings are placed on Rating Watch with Developing Implications.

Management's Perspective

Mr. Kapil Garg, Managing Director of Asian Energy Services Limited, commented on the contract award: "This landmark win further fortifies our leadership in the Coal Handling Plant segment and propels our total order book beyond ₹2,000 crore, underscoring a robust revenue pipeline and a bright growth trajectory for the years ahead."

Company Overview

Established in 1992, Asian Energy Services Limited has evolved into a comprehensive service provider in the energy sector, offering:

• Seismic data acquisition
• EPC for production facilities
• Production enhancement
• Mining services such as material handling

Market Impact

These developments are likely to be viewed positively by investors. The substantial increase in AESL's order book suggests improved revenue visibility, while the credit rating update reflects the company's enhanced financial profile.

As AESL continues to secure high-value, turnkey projects and strengthen its financial position, it reinforces its standing as a trusted industry frontrunner in the energy and mining services sector. Investors and industry observers will likely monitor AESL's execution of the new project and its ability to leverage its enhanced credit facilities for future growth opportunities.

Asian Energy Services Ltd. experienced a significant drop in its share price following the announcement of a merger with Oilmax Energy. The company's stock fell over 13% as investors reacted to the news of the board-approved merger by absorption.

Merger Details

The board of Asian Energy Services has given its approval for a merger by absorption with Oilmax Energy. Under the terms of the scheme:

• Oilmax Energy will be dissolved, with all its assets, liabilities, rights, and approvals transferring to Asian Energy Services.
• The existing 66% stake that Oilmax holds in Asian Energy will be cancelled.
• Asian Energy will issue fresh shares to Oilmax shareholders based on a predetermined share-exchange ratio.

Impact on Shareholding

The merger is expected to have a significant impact on the company's shareholding structure:

• Post-merger, the promoter shareholding will decrease from 65.00% to 47.00%.
• This represents a substantial 46.00% equity dilution for existing shareholders.

Financial Projections

The combined entity resulting from the merger is projected to have:

Notably, the Earnings Per Share (EPS) is expected to improve by 17.00%, increasing from ₹8.40 to ₹9.89.

Market Reaction

The market's initial reaction to the merger announcement has been negative:

• Asian Energy Services shares were trading at ₹344.75, representing an 11.00% decline on the day of the announcement.
• The stock has also seen a year-to-date decline of over 9.00%.

Timeline

The merger process is expected to be completed within 12 months, resulting in a single listed entity.

Investors and market analysts will be closely watching the developments of this merger and its potential long-term impact on Asian Energy Services' performance and market position.