Aakash Exploration Services Limited (AESL) is engaged in providing services for Oil and Gas Exploration. It is Gujarat based company. The company AESL is in the process of getting listed in the primary markets through the initial public offering process. So we checked through the draft red herring prospectus to find the issue details for posting our Aakash Exploration Services Limited IPO Review for you people.
About Aakash Exploration Services Limited IPO :
- IPO Opens on – April 17, 2018.
- IPO Closes on – April 19, 2018.
- Face Value – Rs. 10 Per Equity Share.
- Issue Price – Rs. 56 Per Equity Share.
- Issue Type – Fixed Price Issue IPO.
- Market Lot – 2000 Shares.
- Minimum Order Quantity – 2000 Shares.
- Issue Size – 1,800,000 Equity Shares of Rs 10 aggregating up to Rs 10.08 Cr.
- Listing Exchange – NSE SME Exchange.
- Draft Prospectus – Download.
Objectives of the issue:
- Payment of Cash Credit Facilities.
- Repayment of Unsecured Loans.
- Working Capital Requirement.
- General Corporate Purpose.
- Issue Expense.
About The Company –
- Aakash Exploration Services Limited is incorporated in 2007.
- This company is provides mobile work over rigs, hot oil circulation unit, air compressor, mobile steaming unit (Boiler), mobile pumping unit, crane, manpower services, SRP unit supply and maintenance and other similar services.
- Aakash Exploration Services Limited is an ISO 9001 14001 and OHSAS 18001 certified company.
- This company is providing Oil and Gas field Services to M/S Oil & Natural Gas Corporation Ltd which is a Govt. of India company, Ahmedabad, Mehsana and Hazira.
- The projects of this company and also providing similar services to private oil field operators namely GSPCL, Cairn, Essar, Great Eastern Energy, IOC, Niko, OIL, Price Petroleum etc to their extreme satisfaction.
- Aakash Exploration Services Limited is a national group of Oil and Gas Field Services with a staff of more than 250 employees and operating in more than 7 states of India.
Promoters of the company :
- Mr. Vipul Navin Haria, aged 47 years, is a Managing Director and Promoter of this company.
- Mr. Hemang Navin Haria, aged 45 years, is a Executive Director and Promoter of this company.
- Mr. Krunal Pravin Haria, aged 35 years, is a Executive Director and Promoter of this company.
Aakash Exploration Services Limited IPO Review: The DRHP discloses that the profitability incresed from FY 2013 to FY 2015. But then the profits decreased by 60% on FY 2016. On FY 2017 the company has again managed to turn around and post decent profits of more than 110 Lacs. The current earnings per share is at 2.22 and the PE ratio is at 25.22. Considering the topsy turvy profit figure and still a decent EPS our Aakash Exploration Services Limited IPO Review has a NEUTRAL view on this issue. Long-term investors sitting on excess cash can apply in AESL issue at own risk.