Beezaasan Explotech IPO: Review, Price, Valuation, Date & GMP

Beezaasan Explotech IPO-Complete Overview

Beezaasan Explotech IPO under the SME IPO category is a book build issue of Rs.59.93 Cr (34.25 lac Shares) by Beezaasan Explotech Limited, which was incorporated in August 2013, The company manufactures and supplies a wide range of explosives and explosive accessories. Its primary product line consists of cartridge explosives-water gel, emulsion, and detonating-type explosives.

The company essentially manufactures explosives and explosives accessories for the cement, mining, and defense industries. It has a special interest in the manufacture of high-quality cartridge explosives, including slurry explosives, emulsion explosives, and detonating explosives.

The site of the manufacturing plant is in Gujrat. Its multiple explosive-manufacturing units have been accredited by various quality certifications such as ISO 9001:2015 for Quality Management Systems, ISO 14001:2015 for Environment Management, and ISO 45001:2018 for Occupational Health and Safety Management. 

The chemical explosives are included in the product mix of the company. It has a PAN India presence as of 31 March 2024, with its client base in 11 states and 2 Union territories for the domestic market.

Beezaasan Explotech Limited IPO Overview

This new SME IPO comprises a wholly fresh issue of 34.25 lac Shares (Rs.59.93 Cr). The Beezaasan Explotech Limited IPO date is from 21 Feb to 25 Feb 2025.

This upcoming IPO i.e. the Beezaasan Explotech IPO Price is Rs.165 to Rs.175 per Share. The listing date is 03 Mar 2025 at BSE and SME.

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Click to open a Demat account and apply for the IPO.

 

 

Company Financial

(Amount in Cr)

 

Cash Flows

The cash flows for various activities are mentioned below:

(Amount in lac)

Net Cash Flow In Multiple Activities	30 Sep 2024	31 Mar 2024	31 Mar 2023
Net Cash Flow Operating Activities	198.10	1,003.43	219.34
Net Cash Flow Investing Activities	(507.07)	(847.58)	(990.92)
Net Cash Flow Financing Activities	85.85	(586.30)	1,426.03

 

Sales-wise Revenue Breakdown 

(Amount in lac)

 

State-wise Revenue Breakdown 

(Amount in lac)

 

Product-wise Revenue Breakdown 

(Amount in lac)

(Source: RHP)

 

 

The Objective of The Issue

• Financing the capital expenditure for the civil construction needed to expand the current manufacturing plant in Bhanthala, Mahisagar, Gujarat, to include the Emulsion Explosive-3 Plant, Emulsion Bulk Explosive Plant, and Detonating Fuse Plant.

• Funding for capital expenditures to expand the current production facility in Bhanthala, Mahisagar, Gujarat.

• The building of an extra magazine (storage) facility for the emulsion cartridge explosives and detonating fuse at the current location located in Felsani, Gujarat, requires funding for capital expenditures related to civil construction.

• Acquiring a commercial vehicle.

• Payback or early repayment of all or some of the loans.

• General corporate purposes.

 

Peers of Beezaasan Explotech Ltd.

 

Evaluation

The IPO price is Rs.165 to Rs.175 for each Share.

 

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.6.04 from the last year, the resulting P/E ratio is 28.97x.

Considering the weighted EPS of Rs.5.03 for the last three years, the P/E ratio is 34.8x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 90.29x.

In simple words, the P/E ratio of this IPO (28.97x), compared with the industry’s average P/E of 90.29x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths

• One-stop solution for explosive products.

• Long-term relationships with key customers & suppliers.

• Experienced management team.

• Constant emphasis is laid on the development of new and innovative products.

 

IPO’s Weaknesses

• A lot of licenses, permissions, or registrations may be a thorn effect on which such companies rest; for in their absence, no business activity would proceed in any expected way and, rather soon, would degenerate into insolvency.

• If the company fails to competently deal with inventory, such inability could in some measure damage its reputation, and financial strength.

• As an example, escalated shipping costs or restrictions on imports could adversely impact cash flow, operations, and profitability.

• The general state of the world economy, inflation, interest rates that fluctuate, and financial instability could act as constraints on the growth and performance of the company.

 

 

Beezaasan Explotech IPO GMP

Beezaasan Explotech IPO GMP is Rs.0 as of 18 Feb 2025.

 

IPO Timetable (Tentative)

The Beezaasan Explotech IPO date is 21 Feb with tentative allotment on 27 Feb, refund initiation on 28 Feb, and listing on 03 Mar 2025.

 

Beezaasan Explotech IPO Details 

The IPO with a Face Value of Rs.10 per share, offers a total issue size of 34,24,800 Shares (Rs.59.93 Cr).

 

 

Beezaasan Explotech IPO Lot Details 

The Beezaasan Explotech IPO allows retail investors to invest in a minimum and maximum of 1 Lot (800 Shares) amounting to Rs.140000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (1600 Shares) amounting to Rs.280000.

 

IPO Reservation (% of Net Issue)

 

Promoters And Management of Beezaasan Explotech Ltd.

• Mr. Navneetkumar Radheshyam Somani.

• Mr. Sunilkumar Radheshyam Somani.

• Mr. Rajan Sunilkumar Somani.

• M/s. Navneet R Somani HUF.

• M/s. Sunil R Somani HUF.

 

IPO Lead Managers

• Smart Horizon Capital Advisors Private Limited.

 

 

Dividend Policy

The company has not paid a dividend in the last 3 financial years.

 

Conclusion

Beezaasan Explotech IPO gives investors a chance to invest in an expanding company in the explosives industry with a PAN India presence. The IPO is priced competitively with a P/E ratio lower than the industry average, thus indicating the possibility of value. Nevertheless, investors should factor in risks like regulatory dependence and volatility of the market.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER: This is NOT a buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always discuss with an eligible financial advisor before investing.

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