Beezaasan Explotech IPO: Key Details, Subscription Timeline & Review

Beezaasan Explotech Limited, a leading manufacturer of industrial explosives in India, is set to launch its Initial Public Offering (IPO) on February 21, 2025. With 60 years of industry experience, the company has established a strong presence in the mining and explosive industry. The IPO aims to raise ₹ 59.93 Crores through a fresh issue of 34.24 lakh shares.

Beezaasan Explotech IPO Details

• IPO Opening Date: February 21, 2025

• IPO Closing Date: February 25, 2025

• Allotment Date: February 27, 2025

• Listing Date: March 3, 2025 (Tentative)

• Exchange: BSE SME

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

• Lot Size: 800 shares

• Minimum Investment (Retail): ₹ 1,40,000 (1 lot)

• Minimum Investment (HNI): ₹ 2,80,000 (2 lots)

• Market Capitalization: ₹ 227.15 Crores (at upper band)

• Book Running Lead Manager: SMART HORIZON CAPITAL ADVISORS PRIVATE LIMITED

• Registrar: KFIN TECHNOLOGIES LIMITED

• Market Maker: Rikhav Securities Limited

IPO Objectives

Beezaasan Explotech plans to utilize the IPO proceeds for the following purposes:

1. Expansion of Manufacturing Units: Investment of ₹ 2,691.77 Lakhs for the expansion of Emulsion Explosive-3 Plant, Emulsion Bulk Explosive Plant, and Detonating Fuse Plant in Gujarat.

2. Storage Facility Enhancement: ₹ 202.56 Lakhs for civil construction of additional magazine (storage) facilities.

3. Equipment Purchase: ₹ 144.40 Lakhs for acquiring commercial vehicles.

4. Debt Repayment: ₹ 1,800.00 Lakhs for repayment/prepayment of existing loans.

5. General Corporate Purposes.

Beezaasan Explotech Financial Performance

Beezaasan Explotech has shown steady revenue growth over the past few years. However, the latest half-yearly data suggests a decline in revenue compared to FY 2023.

IPO Valuation & Key Metrics

• Pre-Issue EPS: ₹ 6.04

• Post-Issue EPS: ₹ 3.75

• Pre-Issue P/E Ratio: 28.97x

• Post-Issue P/E Ratio: 46.68x

• Industry P/E Ratio: 90x

• ROCE (FY24): 16.20%

• ROE (FY24): 25.93%

• RoNW: 20.89%

• Annualized EPS (FY24): ₹ 16.7

• PE Ratio: 10.47x

Beezaasan Explotech IPO GMP (Grey Market Premium)

As of February 14, 2025, the Grey Market Premium (GMP) for Beezaasan Explotech IPO is ₹ 0, indicating no premium or discount in unofficial trading.

Anchor Investors in Beezaasan Explotech IPO

The company has successfully raised ₹ 16.94 Crores from Anchor Investors at a price of ₹ 175 per share. A total of 9,68,000 shares were allocated to institutional investors ahead of the IPO.

How to Check Beezaasan Explotech IPO Allotment Status?

Investors can check their allotment status on the registrar’s website by following these steps:

1. Visit the IPO allotment status page.

2. Select “Beezaasan Explotech Limited IPO” from the dropdown list.

3. Enter your Application Number, PAN, or DP Client ID.

4. Click Submit to view allotment details.

Should You Subscribe to Beezaasan Explotech IPO?

Pros:

• Established Business with 60 Years of Experience: Strong industry presence.

• Decent Revenue Growth: Positive financial trends over the years.

• High ROE and ROCE: Indicating efficient capital usage.

• Debt Repayment Plan: Reduction of financial liabilities post IPO.

Cons:

• Declining Revenue Trend: Recent slowdown in business growth.

• Fully Priced IPO: Higher post-issue P/E ratio.

• No GMP Premium: Lack of grey market interest.

Investment Verdict: Given the valuation metrics, lack of GMP movement, and recent revenue trends, investors should be cautious. While the company has strong industry expertise, the IPO appears fully priced. Investors looking for listing gains may avoid this IPO, whereas long-term investors should evaluate based on future growth potential.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are advised to conduct their research before investing.

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The Upcoming IPOs in this week and coming weeks are Swasth Foodtech, Beezaasan Explotech, HP Telecom India.

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