Beezaasan Explotech, a prominent name in the Indian explosive manufacturing industry, is making headlines with its upcoming Initial Public Offering (IPO). This article will provide you with all the details you need to know before considering an investment in this exciting new opportunity.

Founded over 60 years ago, Beezaasan Explotech has established itself as a leader in the field of explosives manufacturing, specializing in world-class explosive products and safety services for the mining and industrial sectors. The company has built a reputation for meeting and exceeding customer expectations, which has been central to its continued growth and success. With decades of experience passed down through generations, the company is set to expand even further with its IPO in 2025.

Beezaasan Explotech IPO Details

Beezaasan Explotech's IPO is a Book Built Issue worth ₹59.93 Crores, consisting entirely of a Fresh Issue of 34.24 Lakh shares. The IPO subscription period opened on February 21, 2025, and will close on February 25, 2025. The allotment is expected to be finalized by February 27, 2025, and the shares will be listed on the BSE SME with a tentative listing date set for March 3, 2025.

The share price band for the IPO has been set at ₹165 to ₹175 per equity share, with the lot size set at 800 shares. Retail investors are required to invest a minimum of ₹1,40,000, while the minimum investment for High-Net-Worth Individuals (HNIs) is ₹2,80,000 for two lots (1,600 shares).

Financial Overview of Beezaasan Explotech

The company’s revenues from operations for the period ending on September 30, 2024, and for the fiscal years 2024, 2023, and 2022 are as follows: ₹10,144.44 Lakh, ₹18,789.64 Lakh, ₹22,917.41 Lakh, and ₹14,190.54 Lakh, respectively. The EBITDA for these periods was ₹1,416.03 Lakh, ₹1,211.00 Lakh, ₹911.01 Lakh, and ₹673.27 Lakh, showing a steady growth trajectory. Similarly, the Profit After Tax (PAT) for these years was ₹832.86 Lakh, ₹486.62 Lakh, ₹293.57 Lakh, and ₹274.25 Lakh, respectively, demonstrating a healthy increase in profits.

For FY24, Beezaasan Explotech has reported a pre-issue EPS of ₹6.04 and a post-issue EPS of ₹3.75. The P/E ratio is 28.97x pre-issue and 46.68x post-issue, compared to the industry average P/E ratio of 90x. The Return on Capital Employed (ROCE) for FY24 stands at 16.20%, while the Return on Equity (ROE) is 25.93% and the Return on Net Worth (RoNW) is 20.89%. These strong financial metrics suggest that the company is in a good position for long-term growth.

Beezaasan Explotech IPO Objectives

The primary objectives for the use of the net proceeds from the IPO are as follows:

1. ₹387.47 Lakhs for capital expenditure related to the expansion of the manufacturing unit for Emulsion Explosive-3, Emulsion Bulk Explosive Plant, and Detonating Fuse Plant.
2. ₹2,304.30 Lakhs for the purchase of plant and machinery for the expansion of these facilities at their existing manufacturing site in Bhanthala, Mahisagar, Gujarat.
3. ₹202.56 Lakhs for the construction of an additional storage facility for explosives at Felsani, Gujarat.
4. ₹144.40 Lakhs for the purchase of commercial vehicles to aid in logistics.
5. ₹1,800.00 Lakhs for repayment of existing borrowings.
6. The remainder will be allocated for general corporate purposes.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Beezaasan Explotech is currently expected to be ₹0, indicating that there is no significant trading activity in the grey market, and any price discovery will depend entirely on the demand and supply of shares once the IPO is listed. The lack of a GMP indicates that the IPO is relatively neutral, and there is no immediate listing gain expected.

IPO Subscription Status

As of February 24, 2025, the live subscription status shows that the IPO has been subscribed 0.83 times on its second day of the subscription period. This means there is still significant investor interest, but the demand is still moderate compared to the total number of shares available.

Beezaasan Explotech IPO Allotment Process

Investors can check the allotment status of their applications starting on February 27, 2025. The process is simple:

1. Navigate to the IPO allotment status page.
2. Select Beezaasan Explotech Limited IPO from the dropdown.
3. Enter the application number, PAN, or DP Client ID.
4. Submit the details to view the allotment status.

Anchor Investors

Beezaasan Explotech has successfully raised ₹16.94 Crores from Anchor Investors at a price of ₹175 per share. These investors have been allocated 9,68,000 equity shares, signaling strong institutional interest in the company.

Conclusion: Should You Invest in Beezaasan Explotech?

Given the company’s strong financials, growth potential, and historical track record, Beezaasan Explotech presents an attractive investment opportunity for long-term investors. However, considering the GMP of ₹0 and the P/E ratio that suggests the IPO is fully priced, we recommend that potential investors exercise caution and carefully consider their investment goals. This IPO might not yield significant listing gains, but it offers a long-term growth story for those interested in the explosives manufacturing sector.

In summary, the Beezaasan Explotech IPO provides an intriguing option for those looking to diversify their portfolios, but investors should weigh the financial performance, subscription status, and GMP trends before making a decision.

The Upcoming IPOs in this week and coming weeks are Shreenath Paper, Balaji Phosphates.

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

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