Asian Energy Services on Wednesday announced that its Board of Directors has approved the issuance of 48 lakh fully convertible warrants for cash through which the company plans to raise around ₹160 crore.
The issue price is ₹335 per warrant with a right to the warrant holders to apply for and be allotted one fully paid-up equity share of face value of ₹10 each of the company within a period of 18 months from the date of allotment of the warrants aggregating to ₹160.8 crore, the company, which specialises in servicing the energy and mining sectors, said
Total shares outstanding (fully diluted) post conversion of 33,50,000 warrants held by promoter and issuance of 48,00,000 convertible warrants will aggregate to 4,95,74,444 equity shares. Post issuance of warrants, the Promoter & Promoter Group holding will stand at 55.07 per cent (fully diluted), it added.
The proposed issue will bring on board large HNIs and family offices. The proceeds from this issuance, if approved, will bolster the company’s financial standing and enhance its flexibility to pursue medium-to-long term growth opportunities.
The company proposes to utilise the net proceeds for exploring growth opportunities, working capital requirement, general corporate purposes.
Asian Energy Services Managing Director Kapil Garg 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.”