Beezaasan Explotech Limited, a leading player in the explosives manufacturing industry with a legacy of 60 years, has launched its Initial Public Offering (IPO) to raise funds for business expansion. The Beezaasan Explotech IPO opens for subscription on February 21, 2025, and closes on February 25, 2025. Investors looking for opportunities in the sector can apply for shares within the price band of ₹165 to ₹175 per equity share.

The IPO consists of a fresh issue of 34.24 lakh shares, aggregating to ₹ 59.93 crore. The allotment is expected to be finalized on February 27, 2025, and the shares will be listed on the BSE SME platform on March 3, 2025. The company has appointed SMART HORIZON CAPITAL ADVISORS PRIVATE LIMITED as the Book Running Lead Manager (BRLM), KFIN TECHNOLOGIES LIMITED as the registrar, and Rikhav Securities Limited as the market maker for the issue.

Beezaasan Explotech IPO Details

The company has set the lot size at 800 shares, requiring a minimum investment of ₹ 1,40,000 for retail investors. High-Net-Worth Individuals (HNIs) need to apply for at least 2 lots, amounting to ₹ 2,80,000.

With an IPO price of ₹175 per share, the company's market capitalization will be ₹ 227.15 crore. The IPO has been launched under a book-built issue process, allowing price discovery within the prescribed band.

Beezaasan Explotech IPO Grey Market Premium (GMP) Trends

As of now, the Beezaasan Explotech IPO Grey Market Premium (GMP) is ₹ 0, indicating no significant unofficial trading activity. The GMP depends on the demand and supply of shares in the unorganized market and does not necessarily reflect the actual listing performance.

Subscription Status & Anchor Investor Participation

The IPO has already attracted attention from anchor investors, with the company raising ₹ 16.94 crore by allocating 9,68,000 equity shares at ₹ 175 per share. The IPO live subscription status as of February 21, 2025, at 11:30 AM, indicates that the issue is subscribed 0.04 times on the first day.

Investors can track the Beezaasan Explotech IPO Live Subscription Status on the BSE website for real-time updates.

How to Check Beezaasan Explotech IPO Allotment Status

Investors can check their IPO allotment status on the registrar’s website from February 27, 2025. The process involves:

• Visiting the IPO allotment status page
• Selecting Beezaasan Explotech IPO from the list
• Entering application number, PAN, or DP Client ID
• Submitting the details to view the allotment status

Beezaasan Explotech IPO Objectives

The net proceeds from the IPO will be utilized for the following purposes:

1. ₹ 387.47 lakh for civil construction to expand the Emulsion Explosive-3 Plant, Emulsion Bulk Explosive Plant, and Detonating Fuse Plant at the Gujarat facility.
2. ₹ 2,304.30 lakh for purchase of plant and machinery for expansion.
3. ₹ 202.56 lakh for civil construction of additional storage at Felsani, Gujarat.
4. ₹ 144.40 lakh for purchase of commercial vehicles.
5. ₹ 1,800 lakh for repayment/prepayment of existing borrowings.
6. General corporate purposes.

Beezaasan Explotech Financial Performance & Valuation

Beezaasan Explotech has demonstrated consistent financial growth, with revenues from operations recorded at:

• ₹ 10,144.44 lakh (September 30, 2024)
• ₹ 18,789.64 lakh (FY24)
• ₹ 22,917.41 lakh (FY23)
• ₹ 14,190.54 lakh (FY22)

The Profit After Tax (PAT) has also grown steadily, from ₹ 274.25 lakh in FY22 to ₹ 832.86 lakh in FY24 (Sept 30, 2024). The pre-issue EPS stands at ₹ 6.04, while the post-issue EPS is ₹ 3.75. The pre-issue P/E ratio is 28.97x, and the post-issue P/E ratio is 46.68x, compared to the industry average of 90x.

The company's Return on Capital Employed (ROCE) is 16.20%, Return on Equity (ROE) is 25.93%, and Return on Net Worth (RoNW) is 20.89%. With an annualized EPS of ₹ 16.7, the post-issue PE ratio is 10.47x, indicating a fully priced IPO.

Beezaasan Explotech IPO Review & Investment Recommendation

Despite its strong legacy and steady financial performance, the IPO valuation appears high. The GMP indicates no substantial listing gains. Investors looking for long-term growth may consider the IPO, but those seeking listing gains should avoid it.

As the Beezaasan Explotech IPO subscription continues, investors should analyze market trends, subscription demand, and financial performance before making an investment decision.

The Upcoming IPOs in this week and coming weeks are Nukleus Office, Shreenath Paper.

The Current active IPO are Beezaasan Explotech, Swasth Foodtech, HP Telecom India.

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