Asian Energy Services shares tumble 13% after board approves merger plan

Asian Energy Services shares fell 13 per cent after it received approval from its board for a draft scheme of merger with Oilmax Energy

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Shares of Asian Energy Services tumbled over 13 per cent on Monday after it received approval for a draft scheme of merger with Oilmax Energy Pvt. Ltd. to strengthen its industry position.  

 

The oil equipment and services provider's stock fell as much as 13.45 per cent during the day to ₹334.1 per share, the biggest intraday fall since April 7 this year. The stock pared losses to trade 8.8 per cent lower at ₹351.9 apiece, compared to a 0.46 per cent advance in Nifty 50 as of 12:53 PM. 

 

Shares of the company currently trade at 3.2 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 5.6 per cent this year, compared to a 5 per cent advance in the benchmark Nifty 50. Asian Energy Services has a total market capitalisation of ₹1,579.19 crore. 

 

Asian Energy Services board clears merger plan 

On Saturday (September 6), the company, in an exchange filing, said its board has approved a draft scheme of merger to absorb Oilmax Energy Pvt Ltd, its holding company. The scheme was cleared at a board meeting, after review by the audit committee and the committee of independent directors, the company said. 

 

The merger proposal is subject to approvals from the National Company Law Tribunal (NCLT), other regulatory authorities, shareholders and creditors. The transaction qualifies as a related-party deal and is being executed on an arm's-length basis. Valuation was carried out by Bansi S. Mehta Valuers LLP, while Sundae Capital Advisors Pvt Ltd issued a fairness opinion on the consideration.

 

Both Asian Energy Services and Oilmax Energy operate in the energy and minerals sector, with a focus on oil and gas. The company said the merger would combine complementary strengths, consolidate assets, enhance technical and operational capabilities, and significantly strengthen its industry position in terms of geographical reach and financial capacity.

 

The amalgamation is expected to create a leading energy and minerals company in India with a global footprint, while delivering value to shareholders, employees, and customers, the company said. 

 

Asian Energy Services Q1 results 

Asian Energy Services reported a 169.42 per cent jump in net profit at ₹5.55 crore for the quarter ended June 2025, compared with ₹2.06 crore in the same quarter last year. Revenue from operations rose 91.68 per cent to ₹115.37 crore in the quarter, against ₹60.19 crore in the year-ago period.

 

The company is a leading provider of integrated services across the upstream oil and gas value chain. Its offerings include 2D and 3D seismic data acquisition, operations and maintenance of onshore and offshore production facilities, production enhancement solutions, and mining services such as the supply and installation of Material Handling Plants and Rapid Loading Systems.