Rs 2,701 crore order book: Multibagger oil & gas field services provider successfully completed the acquisition of Kandla Energy and Chemicals Ltd

The company has delivered a 1-year return of 60 per cent and an impressive 3-year return of 350 per cent.

Deep Industries Limited has successfully completed the acquisition of Kandla Energy and Chemicals Limited, making it a wholly-owned subsidiary. This acquisition, finalized on March 31, 2025, was executed under the reliefs and concessions granted by the Hon’ble NCLT. The target company, engaged in manufacturing, supplying, and exporting hydrocarbon fluids, had no turnover as of March 31, 2024, due to its entry into the Corporate Insolvency Resolution Process in 2022.

The acquisition was completed with a cash consideration of Rs 1,00,000 for 10,000 equity shares, each priced at Rs 10. This strategic move is expected to create synergies for Deep Industries in procuring hydrocarbon fluids and chemicals, thereby enhancing its cost-efficient drilling services. The acquisition aligns with Deep Industries' strategic priorities to strengthen its market position and expand its service offerings in the oil and gas sector.

Deep Industries Ltd, incorporated in 1991, is a prominent player in the oil and gas field services sector, specializing in air and gas compression, drilling and workover services, and gas dehydration. The company holds a significant market position, covering over 70 per cent of post-exploration services in the industry. Its business segments include the Gas Compression Division, the largest in India, and the Gas Dehydration Division, which provides systems on a build, own and operate basis.

The Drilling and Workover Services segment maintains long-term contracts with major PSUs and private companies. Deep Industries also offers integrated project management services and has ventured into EPC of gas processing facilities. The company boasts a robust order book of Rs 2,701 crore, with key clients like ONGC and Oil India contributing significantly to its revenue. Recent strategic moves include the incorporation of a new subsidiary in the UAE and the acquisition of Dolphin Offshore Enterprises, enhancing its capabilities and market reach.

Deep Industries Limited has a market capitalization of over Rs 3,000 crore. The company has delivered a 1-year return of 60 per cent and an impressive 3-year return of 350 per cent. The Price-Earnings (PE) Ratio stands at 19.53. Major public shareholders include LLPs with 3.88 per cent and 3.71 per cent holdings, Monit Exim LLP with 3.71 per cent, and Pushpaben Gadhecha with 1.30 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.