Beezaasan Explotech Limited is set to make its stock market debut with an IPO worth ₹59.933 crores, comprising a fresh issue of 34.25 lakh shares. The subscription period opens on February 21, 2025, and closes on February 25, 2025. Investors can follow the company’s journey as it gears up for its listing on the BSE SME platform on Monday, March 3, 2025.
The IPO offers equity shares with a face value of ₹10, priced in the range of ₹165 to ₹175 per share, with a lot size of 800 shares. Retail investors can enter with a minimum investment of ₹1,40,000 (1 lot), while High Net-worth Individuals (HNIs) can subscribe with at least ₹2,80,000 (2 lots). The company has outlined an efficient post-subscription timeline, with allotment results expected on February 27, 2025, ahead of its market debut on March 3, 2025. As this defence sector player steps into the public domain, investors have an opportunity to tap into India's growing explosive manufacturing industry.
Beezaasan Explotech Limited IPO is a fundraise worth ₹59.93 crores comprising purely of a fresh issue with 34.25 lakh shares reserved for the market maker Rikhav Securities Private Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from February 21, 2025, to February 25, 2025, providing an opportunity for investors looking to gain a stake in the explosives and defence segment.
| Beezaasan Explotech IPO date | February 21, 2025 - February 25, 2025 |
| Price band | ₹165 to ₹175 per share |
| Face value | ₹10 per share |
| Lot size | 800 shares |
| Issue type | Book Built Issue IPO |
| Fresh issue size | 34,24,800 shares amounting to ₹59.93 crores |
| Total issue size | 34,24,800 shares amounting to ₹59.93 crores |
| Listing at | BSE SME |
| Market maker portion | 1,76,000 - Rikhav Securities Pvt Ltd |
| Shareholding post-issue | 1,29,21,133 shares |
| Shareholding pre-issue | 94,96,333 shares |
The Beezaasan Explotech Limited IPO opens for subscription on February 21, 2025, and closes on February 25, 2025, with allotment scheduled for February 27, 2025.
| IPO open date | February 21, 2025 (Friday) |
| IPO close date | February 25, 2025 (Tuesday) |
| Basis of allotment | February 27, 2025 (Thursday) |
| Initiation of refunds | February 28, 2025 (Friday) |
| Credit of shares to Demat account | February 28, 2025 (Friday) |
| Listing date on BSE SME | March 3, 2025 (Monday) |
| Cut-off time for UPI mandate confirmation | 5 PM on February 25, 2025 (Tuesday) |
Beezaasan Explotech Limited, established in August 2013, specializes in the production and supply of a wide range of explosives and explosive accessories. The company primarily manufactures cartridge explosives, including slurry, emulsion, and detonating explosives, catering to industries such as cement, mining, and defense. Its product portfolio is designed to meet the demanding requirements of these sectors, ensuring high performance and reliability.
The company operates from its manufacturing facility located in Gujarat, which is equipped with state-of-the-art infrastructure. Beezaasan Explotech Limited holds several prestigious quality certifications, including ISO 9001:2015 for Quality Management Systems, ISO 14001:2015 for Environmental Management, and ISO 45001:2018 for Occupational Health and Safety Management. These certifications underscore the company’s commitment to maintaining high standards of quality, environmental sustainability, and workplace safety in its operations.
The company plans to allocate the net proceeds from the issue towards several key objectives, including funding capital expenditure for civil construction and the purchase of plant and machinery to expand the existing manufacturing unit for the Emulsion Explosive-3 Plant, Emulsion Bulk Explosive Plant, and Detonating Fuse Plant at its Bhanthala, Mahisagar, Gujarat facility. Additionally, the funds will support the expansion of an additional magazine (storage) facility for emulsion cartridge explosives and detonating fuse at the Felsani, Gujarat location. A portion of the proceeds will also be used for the purchase of a commercial vehicle, repayment or prepayment of certain borrowings, and general corporate purposes.
The Beezaasan Explotech Limited IPO’s key performance indicators, as on March 31, 2024, reflect the company's financial health with a Return on Equity of 25.93%, Return on Capital Employed (ROCE) at 16.20% and a Debt-to-Equity ratio of 1.59. The Return on Net-Worth (RoNW) stands at 20.89%, and the PAT Margin was 2.61%. The Price to Book Value was 6.05. The company’s market capitalisation is ₹226.12 crores.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 101.44 | 187.9 | 229.17 | 141.91 |
| Assets | 82.09 | 68.99 | 61.63 | 42.3 |
| Net Worth | 31.12 | 23.2 | 14.34 | 10.45 |
| Profit After Tax | 8.33 | 4.87 | 2.94 | 2.74 |
| Reserves & Surplus | 21.63 | 13.7 | 6.95 | 3.7 |
| Total Borrowing | 39.66 | 36.94 | 43.29 | 23.93 |
Amount in ₹ crores
The pre-IPO EPS is at ₹5.12 while the post-IPO EPS will be ₹12.89. Similarly, the pre-IPO Price to Earnings ratio is 34.15 and will become 13.57 post-IPO.
Beezaasan Explotech Limited demonstrates strong capabilities in providing tailored explosive products designed to meet specific customer requirements, backed by performance guarantees. The company benefits from long-standing relationships with key customers, who contribute 54.54% of its revenue, and suppliers, accounting for 80.07% of its purchases, ensuring stability and reliability. Its experienced management team drives consistent growth, supported by a continuous focus on innovation and product development based on customer feedback. Additionally, the company adheres to stringent quality control standards, evidenced by its ISO certifications (9001:2015, 14001:2015, and 45001:2018), and holds PESO licenses for manufacturing significant quantities of slurry explosives, emulsion explosives, and detonating fuses.
The company operates from four well-equipped manufacturing facilities in Gujarat, spanning over 40 lakh sq. ft., and a storage magazine in Felsani, Gujarat, covering 20 lakh sq. ft. Its infrastructure includes advanced machinery such as KP machines, strapping machines, and PLC control panels. Beezaasan Explotech has also shown consistent financial growth, with profit after tax (PAT) increasing from Rs 2.74 crore in FY22 to Rs 4.84 crore in FY24, reflecting its operational efficiency and market strength.
Beezaasan Explotech faces several risks, including the complexity and capital-intensive nature of obtaining regulatory approvals for explosive products. The use of hazardous raw materials poses significant safety risks, while failure to meet strict quality standards could lead to order cancellations. The company’s reliance on tender-based business exposes it to cost pressures and low margins. Additionally, its operations are geographically concentrated in Gujarat, making it vulnerable to regional disruptions. A significant portion of its revenue depends on a few key customers, with the top 10 customers contributing over 53% of revenue in recent years, posing a risk if these relationships are lost.
The company also faces financial risks, including outstanding indebtedness of Rs 35.81 crore as of June 30, 2024, and heavy reliance on ammonium nitrate, which accounts for nearly 49% of raw material costs. Supply chain vulnerabilities are evident, as the top 10 suppliers contribute over 77% of total expenses, and the lack of long-term contracts with suppliers increases exposure to price volatility and supply disruptions. Furthermore, a significant portion of revenue (over 64%) comes from slurry explosives, making the company highly susceptible to fluctuations in demand for this product. Ongoing legal proceedings involving the company, its subsidiaries, promoters, and directors also pose potential risks to its business prospects.
Investing early in Beezaasan Explotech Limited’s IPO offers a chance to be part of its growth journey in the defence sector. However, investors should evaluate key aspects such as the company’s operational history, financial performance, industry trends, and expansion strategy. It’s essential to align the investment with personal financial goals and risk tolerance. Reviewing the offer document and seeking professional guidance, if necessary, can help in making a well-informed decision about participating in this IPO.
What is the Beezaasan Explotech Limited IPO?
The Beezaasan Explotech Limited IPO is an BSE SME offering consisting of 34.25 lakh equity shares with a face value of ₹10, aiming to raise ₹59.93 crore. The price band has been set between ₹165 to ₹175 per share, with a minimum order quantity of 800 shares. This IPO will be open for subscription from February 21, 2025, to February 25, 2025. Smart Horizon Capital Advisors Private Limited is the book-running lead manager, Kfin Technologies Limited is the registrar while Rikhav Securities Limited. is the market maker.
When will the Beezaasan Explotech IPO open?
The Beezaasan Explotech Limited IPO will open for subscription on February 21, 2025, and will close on February 25, 2025.
When is the Beezaasan Explotech IPO listing date?
The tentative listing date for the Beezaasan Explotech Limited IPO is Monday, March 3, 2025.
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