Beezaasan Explotech makes weak debut, shares list at 16.5% discount on BSE SME

Explosives-producing company Beezaasan Explotech made a weak debut on the BSE SME platform on Monday, March 3, with its shares listing at a discount of more than 16%.

Beezaasan Explotech shares started trading at ₹146 per share, down 16.57% over the issue price of ₹175 apiece. However, soon after listing the stock rallied as much as 5% to hit the upper circuit limit at ₹153.3 apiece on the BSE.

More than 3.63 lakh equity shares changed hands on the BSE SME platform. The total turnover stood at ₹5.3 crore. The market capitalisation of the company reached ₹188.65 crore.

At the listing price of ₹ 146 per share, the value of a single lot of equity shares bagged by IPO investors stood at ₹1,16,800 (₹146x 800).

IPO investors could have made losses of ₹23,200 per lot as the minimum investment in a single lot was ₹1,40,000 (₹175 x 800) at the upper price band.

Beezaasan Explotech is a manufacturer and supplier of explosives products and explosive accessories. The company launched its initial public offering on February 21 to raise ₹59.93 crore from the primary market. The public offer was open for bidding till February 25.

The BSE SME issue comprised only a fresh issue of 34.24 lakh equity shares worth up to ₹59.93 crore and no offer-for-sale (OFS) component.

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

Riding on strong demand from investors, the Beezaasan Explotech IPO was booked more than 5 times on the final day of the bidding. The SME public issue attracted applications for more than 1.23 crore equity shares compared to 22.8 lakh shares on offer.

The retail individual investors’ portion was subscribed 2.26 times as bids for over 25.67 lakh shares were received from RIIs against 11.38 lakh shares on offer.

The Non-Institutional Investors (NIIs) category was subscribed 4.65 times. The NIIs placed bids for more than 22.74 lakh shares against 4.88 lakh shares on offer. The Qualified Institutional Buyers’ (QIBs) portion was subscribed 11.52 times as applications for more than 75.3 lakh shares were garnered against 6.53 lakh shares on offer.

Beezaasan Explotech Ltd is a producer and supplier of a wide range of explosives and explosive accessories. It manufactures products such as cartridge explosives like emulsion explosives, slurry explosives, and detonating fuses.

Its products are used in sectors like defence, cement, and mining. Border Roads Organisation and public sector undertakings are among its clients.

The company operates under the norms prescribed by the Petroleum Explosive Safety Organisation (PESO). The company has necessary licenses for manufacturing and storage of explosives.

According to its RHP, Beezaasan Explotech would use the IPO funds to meet capital expenditures for civil construction and the acquisition of plant and machinery required to expand its existing Bhanthala production unit in Gujarat.

The company has also proposed to set up an additional magazine facility, detonating fuse and for emulsion cartridge explosives at its Felsani facility in Gujarat.

The company reported revenue of ₹101.44 crore for the April-September period of FY 2024-25. Beezaasan Explotech’s profit after tax stood at ₹8.33 crore in the six months under review.

The company’s revenue stood at ₹187.89 crore in FY 2023-24 compared to ₹229.17 crore in FY 2022-23. Its profit after tax increased to ₹4.86 crore in FY24 against ₹2.93 crore in the preceding fiscal.