Beezaasan Explotech IPO opens to tepid demand, issue booked 43% on Day 1; check key details

The initial public offering (IPO) of Beezaasan Explotech Ltd opened to a lukewarm response from the investors on Friday, February 21. The BSE SME issue has been booked only 43% on Day 1.

The explosives supplier company aims to raise ₹59.93 crore from the primary market through its maiden share sale. The book-building issue will close for bidding on February 25.

As per the BSE data, the IPO attracted bids for over 9.89 lakh shares against 22.8 lakh shares on offer. The issue was booked 43%. The retail investors applied for more than 3.74 lakh shares against the allocation of 11.38 lakh shares for the category. The retail portion was subscribed 33%. The Non-Institutional Investors (NIIs) booked 44% of their allocated quota of 6.64 lakh shares. The NIIs applied for only 14,400 shares. The Qualified Institutional Buyers (QIBs) category was booked 61% on Day 1.

Ahead of the launch of its IPO, Beezaasan Explotech raised a total of ₹16.94 crore from anchor investors. Its anchor round was held on February 20. According to the circular on the BSE, the company allotted 9.68 lakh shares to five anchor investors at an allocation price of ₹175 per equity share.

Here’s a look at all the key details about the issue for the investors interested in applying for the shares of Beezaasan Explotech Ltd.

Beezaasan Explotech IPO price band and other details

Beezaasan Explotech IPO consists exclusively of a fresh issue of 34.24 lakh equity shares, aggregating to an amount of ₹59.93 crore. The issue does not have any offer for sale (OFS) component.

The company has fixed the price band at ₹165 to ₹175 per share for the IPO. The minimum lot size is 800 shares.

Smart Horizon Capital Advisors Private Ltd is the book-running lead manager of the Beezaasan Explotech IPO. The registrar for the issue is Kfin Technologies Ltd. The market maker for the IPO is Rikhav Securities Ltd.

Beezaasan Explotech IPO key dates

The IPO allotment status is expected to be finalised on Thursday, February 27. Refunds will be issued on Friday, February 28, and the allottees will also receive shares in their Demat accounts on the same day. The company has proposed to list its shares on the BSE SME platform on Monday, March 3.

About Beezaasan Explotech and use of IPO proceeds

Beezaasan Explotech Ltd specialises in the manufacturing and supply of a wide range of explosives and explosive accessories, including cartridge explosives, like slurry explosives, emulsion explosives, and detonating fuses.

The company was founded in 2013. Its products are widely used in sectors like cement, mining and defence. It also supplies to the Border Roads Organization and various Public Sector Undertakings (PSU). The company operates under strict regulations set by the Petroleum Explosive Safety Organisation (PESO) and holds the necessary licenses for manufacturing and storage.

The company has proposed to utilise the net proceeds generated from the fresh issue to fund the capital expenditures towards civil construction and the purchase of plant and machinery required for expanding the existing manufacturing unit located in Bhanthala, Gujarat, along with capital expenditure towards civil construction for expanding an additional magazine facility for the emulsion cartridge explosives and detonating fuse at the existing location in Felsani, Gujarat.

Beezaasan Explotech will also use the funds to purchase commercial vehicles and repay the existing debt. The remaining funds will be used for general corporate purposes.

Beezaasan Explotech key financials

As of September 30, 2024, the company’s revenue stood at ₹101.44 crore. In the same period, it reported a profit after tax (PAT) of ₹8.33 crore.

For the financial year ended March 31, 2024, Beezaasan Explotech’s total revenue was recorded at ₹187.89 crore compared to ₹229.17 crore in the preceding fiscal year (FY23). In comparison, the company’s profit after tax for FY24 was at ₹4.86 crore against ₹2.93 crore in FY23.