Beezaasan Explotech IPO is set to raise ₹59.93 crores through a fresh issue of 34.25 lakh shares. The IPO subscription period begins on February 21, 2025, and closes on February 25, 2025, with the allotment expected to be finalised on February 27, 2025. The company plans to list on the BSE SME, with a tentative listing date of March 3, 2025.
The IPO price band is fixed between ₹165 and ₹175 per share, and the minimum lot size for retail investors is 800 shares. This requires a minimum investment of ₹1,32,000, though bidding at the cutoff price may require around ₹1,40,000 due to potential oversubscription. High-net-worth individuals (HNI) must apply for a minimum of two lots, amounting to ₹2,80,000.
Smart Horizon Capital Advisors Private Limited is managing the IPO as the book-running lead manager, while Kfin Technologies Limited is handling the registrar services. Investors can refer to the company's Red Herring Prospectus (DRHP) for more details about the IPO and its financials before making investment decisions.
Industry Outlook
- The Indian manufacturing sector contributes around 17% to GDP and is expected to reach 25% by 2025. With exports hitting a record high of $447.46 billion in FY23, Beezaasan Explotech Limited can benefit from rising demand for industrial explosives used in mining, construction, and infrastructure projects.
- India's mining industry is growing with over 1,319 reporting mines and strong production levels, including 244 lakh tonnes of iron ore and 966 lakh tonnes of coal in February 2024. Beezaasan Explotech Limited, catering to the mining sector, stands to gain from increasing demand for explosives as mining activities expand.
Beezaasan Explotech IPO Objectives
The company proposes to utilise the net proceeds from the IPO for the following objectives:
- Capital expenditure for civil construction to expand the Emulsion Explosive-3 Plant, Emulsion Bulk Explosive Plant, and Detonating Fuse Plant at the Bhanthala, Mahisagar facility in Gujarat.
- Purchase of plant and machinery for the expansion of the existing manufacturing unit at Bhanthala, Mahisagar, Gujarat.
- Capital expenditure for civil construction to expand the magazine (storage) facility for emulsion cartridge explosives and detonating fuse at Felsani, Gujarat.
- Purchase of a commercial vehicle.
- Repayment or prepayment of certain borrowings.
- The remaining funds will be utilised for general corporate purposes.
About Beezaasan Explotech Limited
Beezaasan Explotech Limited is a leading manufacturer and supplier of a diverse range of explosives and explosive accessories, catering to industries such as mining, cement, and defence. The company specialises in cartridge explosives, including slurry explosives, emulsion explosives, and detonating fuse, ensuring high-quality production using nitrate-based mixtures.
Supplying to the Border Roads Organisation and Public Sector Undertakings, the company has built a strong industry presence. Established in 2013 as Beezaasan Explotech Private Limited, the company transitioned to a public limited entity in 2024. The manufacturing journey began in 2018 with a slurry explosive unit in Bhanthala, Gujarat, expanding between 2020 and 2024 to include emulsion explosive and detonating fuse units.
Operations span across 40,68,876.50 sq. ft. in Gujarat, equipped with advanced machinery like KP machines, strapping machines, and PLC control panels for seamless production. A storage facility covering 20,37,382.19 sq. ft. in Felsani, Gujarat, ensures safe inventory management under PESO regulations.
With a licensed capacity of 45,000 metric tons for slurry explosives, 11,400 metric tons for emulsion explosives, and 51 million meters for detonating fuse, the company adheres to rigorous testing and approval processes. Accredited with ISO certifications for quality, environmental, and occupational health management, the company prioritises safety through regular audits and compliance measures.
How To Check the Allotment Status of the Beezaasan Explotech IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for Beezaasan Explotech IPO Online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Beezaasan Explotech IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Beezaasan Explotech IPO
Registered office: 5th Floor, 511, Pramukh Tangent Complex, Sargasan Cross Road, S.G. Highway, Gandhinagar, Gujarat 382421, India.
Phone: +91 6359607701
E-mail: investors@beezaasan.in
Beezaasan Explotech IPO Lot Size
|
Application |
Lots |
Shares |
Amount |
|
Retail (Min) |
1 |
800 |
₹1,32,000 |
|
Retail (Max) |
1 |
800 |
₹1,40,000 |
|
HNI (Min) |
2 |
1,600 |
₹2,80,000 |
Beezaasan Explotech IPO Category Reservation
|
Investor Category |
Shares Offered |
|
QIB Shares Offered |
Not more than 50% of the Net Issue |
|
Retail Shares Offered |
Not less than 35% of the Net Issue |
|
NII (HNI) Shares Offered |
Not less than 15% of the Net Issue |
Beezaasan Explotech IPO Anchor Investors' Details
|
Bid Date |
February 20, 2025 |
|
Shares Offered |
9,68,000 |
|
Anchor Portion Size (In Cr.) |
16.94 |
|
Anchor lock-in period end date for 50% shares (30 Days) |
March 29, 2025 |
|
Anchor lock-in period end date for remaining shares (90 Days) |
May 28, 2025 |
Beezaasan Explotech IPO Promoter Holding
The company is promoted by Navneetkumar Radheshyam Somani, Sunilkumar Radheshyam Somani, Rajan Sunilkumar Somani, along with M/s. Navneet R Somani HUF and M/s. Sunil R Somani HUF.
|
Share Holding Pre-Issue |
96.02% |
|
Share Holding Post Issue |
70.57% |
Key Performance Indicators for Beezaasan Explotech IPO
As of March 31, 2024, the market capitalisation of Beezaasan Explotech's IPO is ₹226.12 crore. Here are the KPIs of Beezaasan Explotech:
|
KPI |
Value |
|
RoE (%) |
16.20 |
|
RoCE (%) |
25.93 |
|
Debt/Equity |
1.59 |
|
PAT Margin (%) |
2.61 |
|
Price to Book Value |
6.05 |
Price Metrics
|
Metric |
Pre-IPO |
Post-IPO |
|
EPS (₹) |
5.12 |
5.93 |
|
P/E (x) |
34.15 |
29.51 |
Note: Pre-IPO EPS is based on pre-issue shareholding and FY24 earnings as of March 31, 2024, from the RHP. Post-issue EPS is based on post-issue shareholding and annualised earnings as of September 30, 2024, from the RHP.
Beezaasan Explotech IPO Prospectus
Beezaasan Explotech IPO Registrar and Lead Managers
Beezaasan Explotech IPO Lead Managers
- Smart Horizon Capital Advisors Private Limited
Registrar for Beezaasan Explotech IPO
Kfin Technologies Limited
- Contact Number: 4067162222, 04079611000
- Email Address: bel.ipo@kfintech.com
Beezaasan Explotech IPO Registrar
Financial Performance of Beezaasan Explotech Limited
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from operations (in ₹ lakhs) | 18,635.85 | 22,791.80 |
| EBITDA (in ₹ lakhs) | 1,057.21 | 785.40 |
| PAT (in ₹ lakhs) | 486.62 | 293.57 |
| Debt-Equity Ratio (x) | 1.59 | 3.02 |
| Total Borrowings (in ₹ lakhs) | 3,693.67 | 4,329.08 |
| Return on Equity (ROE) (%) | 25.93 | 23.69 |
| Return on Capital employed (ROCE) (%) | 16.20 | 12.90 |
Know before investing
Strengths
8Beezaasan Explotech offers a full range of explosive products and accessories.
Strong customer and supplier relationships contribute over 54% and 82% of revenue.
Experienced leadership with expertise in chemical engineering and industrial explosives.
Continuous innovation ensures advanced, high-performance explosive products for customers.
Stringent quality control with ISO 9001:2015 and other key certifications.
Expansion in manufacturing and storage facilities enhances operational efficiency.
Plans to improve the 1.34 debt-equity ratio for financial stability.
Focus on advanced technologies to boost production efficiency and quality.
Risks
8Beezaasan Explotech Limited operates in a highly regulated sector, facing compliance risks.
Hazardous raw materials and products pose safety, environmental, and legal risks.
Dependence on key suppliers for raw materials may impact operations.
Loss of key customers may affect revenue and financial stability.
Tender-based business model involves risks that could impact profit margins.
Non-compliance with strict quality standards may lead to order cancellations.
Outstanding litigations may affect reputation, operations, and financial performance.
Non-ownership of corporate offices may impact business continuity and operations.
Beezaasan Explotech Limited Peer Comparison
| Company Name | Face Value (₹) | Basic & Diluted EPS (₹) | RoNW (%) | NAV per Share (₹) |
|---|---|---|---|---|
| Beezaasan Explotech Limited | 10 | 6.04 | 20.89 | 28.94 |
| Premier Explosives Limited | 2 | 5.27 | 12.91 | 40.95 |
| Solar Industries India Limited | 2 | 92.38 | 26.48 | 365.26 |
