Beezaasan Explotech Limited, a well-established name in explosives manufacturing, has a 60-year legacy in the industry. The company provides high-quality explosive solutions with a focus on safety, innovation, and customer satisfaction. Over the years, the business has grown under the leadership of Navneetkumar Radheshyam Somani, Sunilkumar Radheshyam Somani, and Rajan Sunilkumar Somani, leveraging their 17 years of experience in the industry.

Beezaasan Explotech IPO Overview

Beezaasan Explotech is launching a Book Built Issue IPO of ₹59.93 Crores, comprising a Fresh Issue of 34.24 Lakh Shares. The IPO subscription period runs from February 21, 2025, to February 25, 2025, with allotment on February 27, 2025. The shares are set to list on the BSE SME on March 3, 2025.

• IPO Price Band: ₹165 - ₹175 per share

• Market Capitalization: ₹227.15 Crores at the upper band

• Lot Size: 800 shares

• Retail Minimum Investment: ₹1,40,000

• HNI Minimum Investment: 2 lots (1,600 shares) worth ₹2,80,000

Key Participants:

• Lead Manager: SMART HORIZON CAPITAL ADVISORS PRIVATE LIMITED

• Registrar: KFIN TECHNOLOGIES LIMITED

• Market Maker: Rikhav Securities Limited

Financial Performance of Beezaasan Explotech

Beezaasan Explotech has demonstrated consistent financial growth:

• Revenue from Operations: ₹10,144.44 Lakh (Sep 2024), ₹18,789.64 Lakh (FY24), ₹22,917.41 Lakh (FY23), ₹14,190.54 Lakh (FY22).

• EBITDA: ₹1,416.03 Lakh (Sep 2024), ₹1,211.00 Lakh (FY24), ₹911.01 Lakh (FY23), ₹673.27 Lakh (FY22).

• Profit After Tax (PAT): ₹832.86 Lakh (Sep 2024), ₹486.62 Lakh (FY24), ₹293.57 Lakh (FY23), ₹274.25 Lakh (FY22).

The company's pre-issue EPS stands at ₹6.04, and 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 P/E ratio of 90x.

Beezaasan Explotech IPO Objectives

The IPO funds will be allocated as follows:

1. ₹3.87 Crores for expanding the manufacturing unit at Bhanthala, Gujarat.

2. ₹23.04 Crores for purchasing plant and machinery for expansion.

3. ₹2.02 Crores for civil construction of additional storage at Felsani, Gujarat.

4. ₹1.44 Crores for commercial vehicle purchases.

5. ₹18.00 Crores for repaying borrowings.

6. General corporate purposes.

Grey Market Premium (GMP) and Subscription Status

The Grey Market Premium (GMP) remains at ₹0, indicating no premium in unofficial trading. This suggests no listing gains expected.

As of February 25, 2025, the Beezaasan Explotech IPO has been subscribed 5.11 times, reflecting strong investor demand.

Anchor Investors and Institutional Participation

Beezaasan Explotech raised ₹16.94 Crores from Anchor Investors at ₹175 per share, allocating 9,68,000 equity shares.

IPO Allotment Process

Investors can check their IPO allotment status on February 27, 2025, by visiting the Registrar’s website and entering their Application Number, PAN, or DP Client ID.

Investment Perspective: Should You Invest?

The IPO is fully priced compared to industry valuations. With a neutral GMP, there is no indication of listing gains. Investors looking for long-term exposure in the explosives manufacturing industry may consider this IPO. However, those seeking quick listing profits should avoid it.

Final Verdict: Avoid for Listing Gains, Consider for Long-Term

While Beezaasan Explotech IPO has strong financials and industry experience, the GMP of ₹0 suggests no short-term gains. Investors should consider this IPO only for long-term investment rather than speculative trading.

The Upcoming IPOs in this week and coming weeks are Balaji Phosphates, NAPS Global.

The Current active IPO are Shreenath Paper, Nukleus Office.

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