Beezaasan Explotech Ltd, established in August 2013, is a manufacturer and supplier of a comprehensive range of explosives and explosive accessories, including cartridge explosives, slurry, emulsion, and detonating explosives. These products serve various industries such as cement, mining, and defense.The company is launching its Beezaasan Explotech Ltd IPO with the following details:
Beezaasan Explotech Ltd IPO Details:
- IPO Opening Date: February 21, 2025
- IPO Closing Date: February 25, 2025
- Allotment Date: February 27, 2025
- Listing Date: March 3, 2025
- Issue Size: The IPO comprises a fresh issue of 34.25 lakh equity shares, aggregating to ₹59.93 crores.
- Price Band: Set between ₹165 to ₹175 per share.
- Lot Size: Investors can bid in lots of 800 shares, requiring a minimum investment of ₹1,40,000.
- Listing: The shares are proposed to be listed on the BSE SME platform, with a tentative listing date of March 3, 2025.
- Lead Manager: Smart Horizon Capital Advisors Private Limited is acting as the book-running lead manager for this issue.
Financially, Beezaasan Explotech reported a revenue of ₹187.9 crores in 2024, down from ₹229.17 crores in 2023. The company’s profit increased to ₹4.87 crores in 2024 from ₹2.94 crores in 2023.
The promoters of the company are Mr. Navneetkumar Radheshyam Somani, Mr. Sunilkumar Radheshyam Somani, and Mr. Rajan Sunilkumar Somani.
About Beezaasan Explotech Ltd
Beezaasan Explotech Ltd is a prominent Indian manufacturer specializing in explosives and initiating accessories for sectors such as mining, construction, and defense. With over 60 years of industry experience, the company has developed a reputation for producing high-quality, reliable explosive solutions.
Product Portfolio:
- Slurry Explosives: These are mixtures of nitrates (e.g., ammonium nitrate and sodium nitrate), fuel sensitizers (either explosive or non-explosive), and varying amounts of water.
- Emulsion Explosives: Prepared by agitating a supersaturated aqueous solution of oxidizers with a fuel doped with an emulsifying agent.
- Detonating Cords: Manufactured to meet the needs of the mining, quarrying, and construction industries.
Leadership Team:
- Mr. Sunil Somani: A graduate industrial engineer with over 30 years of experience in explosive trading and application. His extensive knowledge guides the company’s sales and market growth.
- Mr. Navneet Somani: With 25 years of experience in mining and construction, he has been involved in the business since the age of 13, providing him with deep industry insights that help the company understand customer needs.
- Mr. Rajan Somani: Holds a Mechanical Engineering degree from Anglia Ruskin University, UK, and a master’s in management from Imperial College London.
Company Details:
- Incorporation Date: August 21, 2013
- Corporate Identification Number (CIN): U24111GJ2013PTC076499
- Registered Address: 5th Floor, 511, Pramukh Tangent Complex, Sargasan Cross Road, S.G. Highway, Gandhinagar, Gujarat, India – 382421
Beezaasan Explotech Ltd continues to uphold a tradition of safety and innovation, delivering groundbreaking performance for its customers.
Beezaasan Explotech Ltd IPO Lot Size
| Application | Lots | Shares | Amount |
| Retail (Minimum) | 1 | 800 | ₹1,40,000 |
| Retail (Maximum) | 1 | 800 | ₹1,40,000 |
| HNI (Minimum) | 2 | 1,600 | ₹2,80,000 |
- Retail investors can apply for one lot (800 shares) or more, depending on their eligibility.
- HNI (High Net-worth Individuals) and institutional investors can bid for multiple lots.
Beezaasan Explotech Limited Financial Information
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | 82.09 | 68.99 | 61.63 | 42.3 |
| Revenue | 101.44 | 187.9 | 229.17 | 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 Indicator
| 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 |
Objects of the Issue of Beezaasan Explotech Ltd IPO
Beezaasan Explotech Ltd is launching an Initial Public Offering (IPO) to raise funds for the following objectives:
| Objective | Details |
| Expansion of Manufacturing Unit | Enhance production capacity for emulsion explosives and detonating cords. |
| Working Capital Requirements | Support day-to-day operations and business growth. |
| General Corporate Purposes | Address other corporate needs as they arise. |
The company plans to utilize the net proceeds from the IPO to achieve these goals, aiming to strengthen its position in the explosives manufacturing industry.
Beezaasan Explotech Ltd Growth
Here’s a general representation of Beezaasan Explotech Ltd’s growth based on available financial performance and projected figures for their IPO:
| Financial Metric | FY 2024 | 2023 | Growth (%) |
| Revenue | ₹187.9 Crore | ₹229.17 Crore | -18.0% |
| Net Profit | ₹4.87 Crore | ₹2.94 Crore | +65.5% |
| EPS (Earnings Per Share) | ₹5.67 | ₹3.42 | +65.5% |
| Gross Profit Margin | 18.5% | 15.4% | +3.1% |
- The revenue saw a slight decrease in FY 2024 compared to FY 2023.
- However, there was a significant growth in profit, indicating better cost management or other operational efficiencies.
These figures give a snapshot of the company’s recent performance, highlighting areas of growth. The upcoming IPO might help fuel further expansion and boost financial performance.
Strengths Of Beezaasan Explotech Ltd IPO:
1) Established Industry Presence:
- Beezaasan Explotech has been in the explosive manufacturing industry for over a decade, which has helped it build strong relationships with clients in mining, construction, and defense sectors.
2) Diverse Product Range:
- The company offers a comprehensive range of explosives and accessories such as emulsion explosives, detonating cords, and slurry explosives, catering to multiple industries, which reduces dependency on a single market.
3) Experienced Leadership:
- The promoters and management team bring years of experience in industrial engineering, explosives trading, and mining sectors, providing strong leadership for future growth.
4) Growing Industry Demand:
- The mining, construction, and defense sectors are expected to grow, providing an expanding market for Beezaasan Explotech’s products.
5) Robust Financial Performance:
- Despite a slight decrease in revenue, the company’s net profit saw significant growth, suggesting improved cost management and operational efficiency.
6) IPO Fund Utilization:
- The funds raised will help in enhancing manufacturing capacities and meeting working capital requirements, which could lead to future growth and stronger financial positioning.
Risks Of Beezaasan Explotech Ltd IPO:
1) Revenue Volatility:
- Beezaasan Explotech’s revenue declined in FY 2024 compared to FY 2023. This may indicate vulnerability to market fluctuations, raw material price volatility, or seasonal demand variations in the explosive sector.
2) Regulatory Risks:
- Being in the explosives manufacturing industry, the company faces significant regulatory scrutiny, both in terms of safety standards and environmental regulations, which could impact operations or lead to compliance costs.
3) Competition:
- The explosives industry is highly competitive, with several larger and established players. Beezaasan Explotech could face challenges in expanding market share in the face of strong competition.
4) Dependency on Key Sectors:
- The company’s revenue heavily relies on the performance of the mining, construction, and defense sectors. A downturn in these industries due to economic conditions could significantly affect the company’s performance.
5) Technological and Operational Risks:
- Any technological disruptions or failure to innovate in manufacturing processes could hinder Beezaasan Explotech’s ability to meet market demands or maintain profitability.
6) Debt and Financial Leverage:
- Depending on the IPO proceeds, the company may face challenges in managing its debt load, especially if working capital requirements exceed expectations or if there’s difficulty in repaying obligations.
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