Asian Energy Services To Strengthen Financial Stability: ₹160 Crore Preferential Issue

Asian Energy Services Limited (AESL), a leading provider of services to the energy and mining sectors, has announced a significant step towards its growth strategy. The company’s Board of Directors has approved the issuance of 48,00,000 fully convertible warrants at an issue price of ₹335 per warrant. These warrants will grant holders the right to subscribe to 1 fully paid-up Equity Share of ₹10 each within 18 months of allotment. The total issue size is ₹160.8 crore.

Following the conversion of existing warrants held by promoters and the issuance of these new warrants, AESL’s fully diluted shares outstanding will reach 4,95,74,444. This will result in a 55.07% promoter holding. The proposed issue aims to attract large high-net-worth individuals (HNIs) and family offices, further strengthening the company’s financial position.

The net proceeds from the warrant issuance, if approved by shareholders, will be utilised to explore growth opportunities, meet working capital requirements, and support general corporate purposes. AESL’s strategic focus on expanding its operations and strengthening its financial foundation underscores its commitment to long-term value creation for its shareholders.

Commenting on this, Mr Kapil Garg, Managing Director, Asian Energy Services, said, “The funds we raised will ensure we remain well-capitalized as we pursue new opportunities in operations and maintenance for the oil & gas sectors, as well as in CHP projects and the minerals sector. This capital infusion not only strengthens our financial position but also equips us to continue our growth trajectory, allowing us to expand both organically and through strategic acquisitions. With this robust financial backing, we are poised to enhance our market presence and drive long-term success across all facets of our business.”

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.