By Abhay Ray 
Introduction
Incorporated in August 2013, Beezaasan Explotech Limited manufactures and supplies a comprehensive range of explosives and explosive accessories. It primarily produces cartridge explosives, including slurry, emulsion, and detonating explosives. The company is primarily involved in the manufacturing of explosives and explosives accessories used in the cement, mining, and defence industries. The company focuses on producing high-quality cartridge explosives, which include slurry explosives, emulsion explosives, and detonating explosives.
The company’s manufacturing facility is situated in Gujrat. The company’s explosive manufacturing units hold multiple quality certifications, including ISO 9001:2015 for Quality Management Systems, ISO 14001:2015 for Environmental Management, and ISO 45001:2018 for Occupational Health and Safety Management. The company’s product portfolio consists of chemical explosives.
About Beezaasan Explotech IPO
The IPO of the explosives manufacturing company will open on February 21. Here are all the details including the price band. Under this IPO, 34.24 lakh fresh equity shares worth ₹ 59.93 crore will be issued. There will be no Offer for Sale (OFS), meaning the entire proceeds from the IPO will go to the company. Beezaasan Explotech Limited IPO is open for subscription on 21st February. This will be the second SME IPO to come on Dalal Street next week along with HP Telecom India. The company intends to raise ₹ 59.93 crore through the IPO. Investors will have the opportunity to invest in it till February 25.
Under this IPO, 34.24 lakh fresh equity shares worth ₹ 59.93 crore will be issued. At the same time, there will be no sale through Offer for Sale (OFS). This means that the entire proceeds from the IPO will go to the company. Smart Horizon Capital Advisors is acting as the sole book running lead manager for this issue. The company, which primarily produces cartridge explosives catering to cement, mining, and defence industries, intends to raise ₹ 59.93 crore via initial share sale of 34.24 lakh equity shares at the upper price band.The book-built issue comprises of solely fresh issue by the company, closing on February 25. The IPO share allotment will be finalised by February 27.Investors can start trading in Beezaasan Explotech shares on the BSE SME effective March 3. Half of the public issue size has been reserved for qualified institutional buyers, 15 percent for non-institutional investors, and the remainder 35 percent for retail investors.
Beezaasan Explotech IPO price band is set at ₹165 to ₹175 per share. The minimum lot size for an application is 800. The minimum amount of investment required by retail investors is ₹1,32,000. But it is suggested to the investor to bid at the cutoff price to avoid the oversubscription senerio, which is about to ₹1,40,000.The minimum lot size investment for HNI is 2 lots (1,600 shares) amounting to ₹2,80,000.
The Gujarat-based company will use the IPO proceeds to expand its existing manufacturing unit located in Mahisagar, Gujarat. This includes expansion of Emulsion Explosive-3 Plant, Emulsion Bulk Explosive Plant and Detonating Fuse Plant.Further, the funds raised from the IPO will be used for expansion of an additional magazine (storage) facility for emulsion cartridge explosives and detonating fuses at Phelsani (Gujarat), purchase of commercial vehicles, repayment of debt and general corporate purposes.
Objects of the Issue – IPO Objectives of Beezaasan Explotech
The company proposes to utilize the Net Proceeds from the Issue towards funding the following objects :
- Funding the Capital expenditure towards civil construction required for the Expansion of the existing manufacturing unit for the Emulsion Explosive-3 Plant, Emulsion Bulk Explosive Plant and Detonating Fuse Plant at the existing Manufacturing facility situated at Bhanthala, Mahisagar, Gujarat.
- Funding of Capital expenditure towards the purchase of Plant and machinery for Expansion of existing manufacturing unit for the Emulsion Explosive-3 Plant, Emulsion Bulk Explosive Plant and Detonating Fuse Plant at the existing Manufacturing facility situated at Bhanthala, Mahisagar, Gujarat.
- Funding of capital expenditure towards civil construction is required for the expansion of an additional magazine (Storage) facility for the emulsion cartridge explosives and detonating fuse at the existing location situated at Felsani, Gujarat.
- Purchase of Commercial Vehicle.
- Repayment/prepayment of all or certain of the borrowings availed of by the Company.
- General corporate purposes.
Beezaasan Explotech’s Business and Finances
This company manufactures explosives and explosive accessories. Beezaasan Explotech Limited manufactures and supplies slurry and emulsion explosives, detonating fuses, and accessories for mining, cement, and defence industries, including PSUs and the Border Roads Organization, ensuring high-quality standards with advanced technology.
With state-of-the-art facilities in Gujarat, Beezaasan Explotech Limited manufactures slurry and emulsion explosives and detonating fuses under PESO regulations, ensuring seamless production, stringent quality control, and a licensed capacity of 45,000 MT for slurry explosives. The company mainly manufactures cartridge explosives and supplies them to the cement, mining and defense industries. The company’s manufacturing facility is located in Gujarat.
Talking about finances, the company’s PAT was ₹ 2.74 crore in FY22, which increased to ₹ 2.94 crore in FY23 and ₹ 4.87 crore in FY24. At the same time, the company’s revenue increased from ₹ 141.91 crore in FY22 to ₹ 229.17 crore in FY23. However, it declined to ₹ 187.9 crore in FY23.
Conclusion
In conclusion, Beezaasan Explotech stands out as a leading company in India, renowned for its 60 years of expertise in manufacturing world-class explosives. With a focus on safety, quality, and customer satisfaction, the company has successfully built a legacy passed down through generations. Their vast experience in the industry and mining sector has driven the development and production of innovative explosive products and services, consistently exceeding customer expectations.
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