Beezaasan Explotech IPO: A Comprehensive Analysis
Beezaasan Explotech Limited recently launched its IPO, offering investors a chance to participate in the growth of a company specializing in explosives and explosive accessories. This blog post provides a detailed overview of the IPO, covering essential aspects such as the company's operations, IPO details, financial performance, and investment considerations.
Understanding Beezaasan Explotech Limited
Beezaasan Explotech Limited, incorporated in August 2013, manufactures and supplies a comprehensive range of explosives and explosive accessories. The company primarily produces cartridge explosives, including slurry, emulsion, and detonating explosives, catering to industries such as cement, mining, and defense.
- Core Business: Manufacturing of explosives and explosive accessories.
- Product Range: Slurry explosives, emulsion explosives, and detonating explosives.
- Industry Focus: Cement, mining, and defense industries.
- Manufacturing Facility: Located in Gujarat, with ISO certifications for quality, environment, and safety management.
- Market Presence: PAN India presence, serving 11 states and 2 Union territories.
IPO Details
The Beezaasan Explotech IPO was a book-built issue aimed at raising Rs 59.93 crores through a fresh issue of 34.25 lakh shares.
- IPO Size: Rs 59.93 crores
- Issue Type: Fresh issue of 34.25 lakh shares
- IPO Dates: February 21, 2025 to February 25, 2025
- Allotment Finalization: February 27, 2025
- Listing Date: March 3, 2025
- Listing Exchange: BSE SME
- Price Band: ₹175 per share
- Lot Size: 800 shares
- Minimum Investment (Retail): ₹1,40,000 (at cut-off price)
- Lead Manager: Smart Horizon Capital Advisors Private Limited
- Registrar: Kfin Technologies Limited
- Market Maker: Rikhav Securities Limited
IPO Timeline
Here's the tentative schedule for the Beezaasan Explotech IPO:
| Event | Date |
|---|---|
| IPO Open Date | Fri, Feb 21, 2025 |
| IPO Close Date | Tue, Feb 25, 2025 |
| Tentative Allotment | Thu, Feb 27, 2025 |
| Initiation of Refunds | Fri, Feb 28, 2025 |
| Credit of Shares to Demat | Fri, Feb 28, 2025 |
| Tentative Listing Date | Mon, Mar 3, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on February 25, 2025 |
IPO Progress Tracker
Subscription Details
The IPO offered shares to various investor categories, including QIB, NII, Retail, and Anchor investors.
| Investor Category | Shares Offered | Percentage Allocation |
|---|---|---|
| Anchor Investor | 9,68,000 | 28.26% |
| Market Maker | 1,76,000 | 5.14% |
| QIB | 6,53,600 | 19.08% |
| NII (HNI) | 4,88,800 | 14.27% |
| Retail | 11,38,400 | 33.24% |
| Total | 34,24,800 | 100% |
Anchor Investors
Beezaasan Explotech IPO raised Rs 16.94 crore from anchor investors on February 20, 2025.
| Detail | Value |
|---|---|
| Bid Date | February 20, 2025 |
| Shares Offered | 9,68,000 |
| Anchor Portion Size | Rs 16.94 crore |
| Anchor lock-in period end date for 50% shares (30 Days) | March 28, 2025 |
| Anchor lock-in period end date for remaining shares (90 Days) | May 27, 2025 |
Lot Size Details
Investors could bid for a minimum of 800 shares and in multiples thereof.
| Category | Lots | Shares | Amount (₹) |
|---|---|---|---|
| Retail (Min) | 1 | 800 | 1,40,000 |
| Retail (Max) | 1 | 800 | 1,40,000 |
| HNI (Min) | 2 | 1,600 | 2,80,000 |
Company Financials
Here's a summary of Beezaasan Explotech Limited's financial performance:
| Period Ended | 30 Sep 2024 (₹ Crore) | 31 Mar 2024 (₹ Crore) | 31 Mar 2023 (₹ Crore) | 31 Mar 2022 (₹ Crore) |
|---|---|---|---|---|
| Assets | 82.09 | 68.99 | 61.63 | 42.3 |
| Revenue | 101.44 | 187.92 | 29.17 | 141.91 |
| Profit After Tax | 8.33 | 4.87 | 2.94 | 2.74 |
| Net Worth | 31.12 | 23.2 | 14.34 | 10.45 |
| Reserves and Surplus | 21.63 | 13.7 | 6.95 | 3.7 |
| Total Borrowing | 39.66 | 36.94 | 43.29 | 23.93 |
Key Performance Indicators (KPI)
The market capitalization of Beezaasan Explotech IPO is Rs 226.12 Cr.
KPI as of Sun, Mar 31, 2024.
| KPI | Values |
|---|---|
| ROE | 25.93% |
| ROCE | 16.20% |
| Debt/Equity | 1.59 |
| RoNW | 20.89% |
| PAT Margin | 2.61 |
| Price to Book Value | 6.05 |
Pre and Post IPO EPS & P/E
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 5.12 | 12.89 |
| P/E (x) | 34.15 | 13.57 |
Note:
- The Pre IPO EPS is calculated based on Pre issue shareholding as on date of RHP and the latest FY earnings as of March 31, 2024 that is available in RHP.
- The Post Issue EPS is calculated based on the Post issue shareholding and annualized FY earnings of September 30, 2024 that is available in RHP.
Objects of the Issue
The company intends to use the IPO proceeds for:
- Expanding the existing manufacturing unit for Emulsion Explosive-3, Emulsion Bulk Explosive, and Detonating Fuse Plants.
- Purchasing plant and machinery for the expansion.
- Constructing an additional magazine (storage) facility.
- Purchasing commercial vehicles.
- Repaying/prepaying company borrowings.
- General corporate purposes.
Promoter Holding
The company's promoters include Mr. Navneetkumar Radheshyam Somani, Mr. Sunilkumar Radheshyam Somani, and Mr. Rajan Sunilkumar Somani, M/s. Navneet R Somani HUF and M/s. Sunil R Somani HUF.
| Particulars | Share Holding |
|---|---|
| Pre Issue | 96.02% |
| Post Issue | 70.57% |
Note: The value will be calculated using Equity Dilution = Share Holding Pre Issue - Share Holding Post Issue
Company Details
- Company: Beezaasan Explotech Limited
- Address: 5th Floor, 511, Pramukh Tangent Complex, Sargasan Cross Road, S.G. Highway, Gandhinagar, -382421
- Phone: +91 6359607701
- Email: investors@beezaasan.in
- Website: www.beezaasan.com
Registrar Details
- Registrar: Kfin Technologies Limited
- Phone: 04067162222, 04079611000
- Email: bel.ipo@kfintech.com
- Website: https://kosmic.kfintech.com/ipostatus/
Conclusion
The Beezaasan Explotech IPO presented an opportunity to invest in a company with a strong presence in the explosives and explosive accessories market. Understanding the company's financials, IPO details, and future objectives is crucial for making an informed investment decision. As the IPO timeline progresses, investors should monitor allotment status and listing performance closely.