Beezaasan Explotech IPO opens on February 21 – Check Details
Beezaasan Explotech IPO
Beezaasan Explotech IPO Set to Open on February 21, 2025
The much-awaited Initial Public Offering (IPO) of Beezaasan Explotech Limited, a leading explosives manufacturing company based in Gujarat, is set to open for subscription on February 21, 2025.
The IPO, which is part of the SME (Small and Medium Enterprises) segment, will offer an exciting opportunity for investors to gain exposure to a growing sector in India.
The company, which manufactures explosives and accessories for key industries such as cement, mining, and defense, is looking to raise Rs 59.93 crore through the public offering.
The IPO will remain open for subscription until February 25, 2025, and will be priced within a range of Rs 165 to Rs 175 per equity share.
This makes it one of the most anticipated SME IPOs of the year, alongside HP Telecom India’s IPO, which will also hit the market next week.
Investors from all categories, including Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Investors, will have the chance to subscribe to the issue, with each category having specific allotment percentages.
Beezaasan Explotech IPO Details: What Investors Need to Know
This public offering consists of a total of 34.24 lakh fresh equity shares, valued at an estimated Rs 59.93 crore.
Notably, there will be no Offer for Sale (OFS) component in the issue, which means that all the proceeds from the IPO will go directly to Beezaasan Explotech, helping the company fund its growth and expansion plans.
The sole book running lead manager for the IPO is Smart Horizon Capital Advisors, which will oversee the entire process of the offering.
The IPO is designed to attract a wide range of investors, from institutional buyers to retail investors. The breakdown of the issue reservation is as follows:
- 50% of the issue is reserved for Qualified Institutional Buyers (QIBs)
- 15% of the issue is set aside for Non-Institutional Investors (NIIs)
- 35% of the issue will be allocated for Retail Investors
Given the reservation structure, retail investors have an opportunity to access a significant portion of the offering.
It is expected that there will be strong demand for the shares, especially considering the company’s steady growth trajectory and its plans for expansion.
Key Dates for the IPO
- IPO Opening Date: February 21, 2025
- IPO Closing Date: February 25, 2025
- Share Allotment Date: February 27, 2025
- Listing Date: March 3, 2025 (on BSE SME platform)
The listing will take place on the BSE SME platform, where the shares will start trading. Investors who successfully subscribe to the IPO and are allotted shares will be able to begin trading their holdings from this date.
How Beezaasan Explotech Plans to Use the Funds Raised
Beezaasan Explotech has outlined a clear and strategic plan for utilizing the funds raised from the IPO.
The company intends to direct the capital into several key areas of its business to fuel its expansion and meet growing market demands. Below are the primary uses of the IPO proceeds:
- Expansion of Manufacturing Facilities: The company plans to significantly enhance its manufacturing capabilities. The primary focus will be the expansion of its Emulsion Explosive-3 Plant, Emulsion Bulk Explosive Plant, and Detonating Fuse Plant in Mahisagar, Gujarat. This expansion is crucial to meeting the increasing demand for explosives from industries such as cement, mining, and defense.
- Development of Additional Storage Facilities: Beezaasan Explotech will expand its infrastructure by setting up an additional magazine (storage) facility for emulsion cartridge explosives and detonating fuses at its Felsani location in Gujarat. This will improve the company’s capacity to handle increased production and ensure that it can meet both domestic and international demand.
- Procurement of Commercial Vehicles: The company will use a portion of the funds to acquire commercial vehicles. These vehicles will be essential for the transportation of explosives to clients across India, ensuring timely deliveries and strengthening the company’s logistical operations.
- Repayment of Debt: Part of the funds raised will be directed towards reducing the company’s outstanding debt. Debt repayment will help improve the company’s balance sheet, making it financially stronger and more agile in capitalizing on future growth opportunities.
- General Corporate Purposes: The remaining funds will be allocated for general corporate purposes, which may include working capital needs, marketing and brand-building efforts, and investments in research and development (R&D).
Business Overview of Beezaasan Explotech
Beezaasan Explotech is a well-established manufacturer of explosives and explosive accessories. The company produces cartridge explosives and supplies them to various industries, including cement, mining, and defense.
The company’s manufacturing facility is strategically located in Gujarat, which allows it to efficiently serve its clients across India.
The company’s products are critical for mining operations, as well as for infrastructure projects in the cement industry.
Additionally, Beezaasan Explotech has a strong presence in the defense sector, where its explosives are used for a variety of applications, including defense training and manufacturing.
Beezaasan Explotech is focused on providing high-quality explosives that meet industry standards and regulatory requirements.
The company’s expertise in the explosives sector, combined with its strategic location and capacity for expansion, positions it well for continued growth.
Financial Performance and Growth Prospects
Beezaasan Explotech has demonstrated strong financial performance in recent years. The company’s Profit After Tax (PAT) has shown consistent growth from Rs 2.74 crore in FY22 to Rs 4.87 crore in FY24. Similarly, its revenue has increased from Rs 141.91 crore in FY22 to Rs 229.17 crore in FY23.
However, there was a slight dip in revenue in FY24, which stood at Rs 187.9 crore. Despite the revenue drop, the company has maintained solid profitability, which reflects its operational efficiency and market positioning.
The growth in revenue and profitability underscores the company’s ability to capitalize on the rising demand for explosives in the mining, cement, and defense sectors.
With the planned expansion of its manufacturing facilities and infrastructure, Beezaasan Explotech is poised to benefit from the growing demand for explosives in India and beyond.
Final Remarks: Should Investors Consider the Beezaasan Explotech IPO?
The Beezaasan Explotech SME IPO offers investors a promising opportunity to invest in a well-established explosives manufacturing company that has shown steady growth.
With a clear and strategic plan for utilizing the funds raised through the IPO, the company is positioning itself for future growth and increased market share.
Investors should carefully consider the company’s strong financial performance, its expansion plans, and the growing demand for explosives across various industries before making an investment decision.
The IPO also offers a chance for retail investors to participate in the growth of a niche but essential industry that plays a critical role in the development of infrastructure and industrial sectors.
With its focused growth strategy, strong market positioning, and experienced management, Beezaasan Explotech has the potential to deliver long-term value to its shareholders, making this IPO an exciting prospect for those looking to diversify their investment portfolios.
