Rahul Khanna
Beezaasan Explotech Ltd. (BEL) deals in manufacturing and supplying a wide array of Explosives and Explosive decorations covering mainly cartridge explosives, which include Slurry Explosives, Emulsion Explosives, and Detonating Fuse.
Its products are manufactured using a mixture of nitrate and cater to diverse requirements. It has designed products that meet the stringent requirements of various industries, including the cement industry, the mining industry, and the defence industry. The Company also supplies Border Roads Organization and Public Sector Undertakings. Its trade units are equipped with technologically equipped quality assurance systems, which ensure a high standard of inputs and outgoing products.
Initially, the company started a slurry explosive manufacturing unit situated at Bhanthala Village in Mahisagar District, Gujarat, in 2018. Furthermore, it added an Emulsion Explosive unit, a supplementary Slurry Explosive unit, and a Detonating fuse unit between the years 2020-2024 situated at the same premises in Mahisagar District. It has manufacturing facilities strategically positioned in and around Gujarat, spread over a total area of 40,68,876.50 Sq. Ft.
Its engineering facilities are equipped with a comprehensive range of KP Machines, Strapping Machines, PLC Control Panel, etc., to sustain a seamless production operation and manufacturing process. The capability ensures a smooth assembly process and easy logistics suitable for carrying out manufacturing operations. It has also built storage magazines near the manufacturing unit at Felsani Gujarat, spread over a total area of 20,37,382.19 Sq. Ft. to store the explosives. The Company is strictly delimited by PESO (Petroleum Explosive Safety Organisation) for engineering and storing the explosives for which the license is obtained.
Beezaasan Explotech Ltd IPO Details
Initial public offer of up to 34,24,800 fairness shares of face value of Rs. 10/- each (The Equity Shares) of Beezaasan Explotech Limited (The Company or Beezaasan Explotech or The Issuer) for cash at a price of Rs. per equity share including a portion premium of Rs. per equity share (The Issue Price) aggregating to Rs. crores (The Issue), of which upto 1,76,000 equity dividends of face value of Rs. 10/- each for cash at a price of Rs. per equity share with a share premium of Rs. per equity share aggregating to Rs. crores will be reserved for subscription by market maker to the issue (The Market Maker Reservation Portion).
The issue less the market maker reservation portion, i.e., net issue of up to 32,48,800 equity shares of face value of Rs. 10/- each at a price of Rs. per equity share including a share premium of Rs. per equity share aggregating to Rs. crores is herein after referred to as the Net Issue. The issue, besides the net issue, will constitute 26.51% and 25.14%, Respectively, of the post-issue paid-up equity share capital of the Company. Price Band: Rs. 165 to Rs. 175 per equity share of face value of Rs. 10 each. The Floor price and Cap price are 16.50 times 17.50 times the face value of the fairness shares, respectively. Bids can be made for a minimum of 800 equity shares besides in multiple of 800 equity shares thereafter.
Investment Strategy
BEL is engaged in the manufacturing business and supplies a varied array of explosives and related accessories. It marked growth in its top and bottom lines. Great performance for H1 of FY25 not only raises eyebrows but also raises concerns over its sustainability going forward. Based on its recent financial information, the issue appears fully priced. Well-informed investors may park reserves for the medium to long term.
- Review By Dilip Davda on February 15, 2025
- eezaasan Explotech IPO Review: IPO Offer Details & Structure
- Issue Period: 21 – 25 February 2025
- Issue Price: INR 165 – 175 per share
- Fresh Issue: Up to 34,24,800 equity shares
- Total Issue Size: INR 56.51 – 59.93 crore
- Face Value: INR 10 per share
- Listing Exchange: BSE SME
- Market Maker Reservation: 1,76,000 equity shares
- Net Public Issue: 32,48,800 equity shares
Product Portfolio
Established in 2013, Beezaasan Explotech specializes in the engineering of industrial explosives, catering primarily to the mining and infrastructure industries. The Company converted from a private limited to a public limited entity in May 2024 to facilitate its IPO. With a registered office in Gandhinagar, Gujarat, and a corporate office in Himatnagar, the Company operates at a strategic location that benefits from logistical advantages. The Company’s management team has widespread experience in the industry, ensuring strong governance in addition to business execution.
Beezaasan Explotech manufactures a choice of industrial explosives, including bulk explosives, cartridge explosives, and detonators, serving mining, edifice, and defense industries. Given India’s focus on infrastructure and mineral extraction, demand for industrial explosives is projected to remain strong, making this IPO particularly relevant to investors tracking growth in these sectors. The corporation also invests in research and development to create innovative solutions for safer, more efficient explosive applications, ensuring acquiescence with international safety standards.
Beezaasan Explotech Ltd Contact Details
- Beezaasan Explotech Ltd, Karvy Selenium Tow-B, 31&32 Financial Dist, Nanakramguda, Hyderabad-500032
- Phone – 91-40-67162222
- Fax – 91-40-23001153/23420814
- Email – investors@beezaasan.in
- Website – www.beezaasan.com
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