Beezaasan Explotech Limited is coming up with an IPO with a fresh issue of 34,24,800 shares worth INR 59.93 crores. The company aims to expand manufacturing facilities, enhance storage capacity, acquire machinery and vehicles, repay borrowings, and fund corporate needs. 

Beezaasan Explotech IPO – Important Dates 

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Beezaasan Explotech Limited IPO – Company Profile 

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. 

Ensuring safety and quality, Beezaasan Explotech Limited follows strict standards, conducts regular audits, and holds ISO 9001, 14001, and 45001 certifications, prioritising workplace safety, environmental responsibility, and superior product standards. 

Beezaasan Explotech Ltd IPO Fundamental Analysis 

Beezaasan Explotech Limited’s financial analysis reveals a mixed performance. Revenue declined, while equity grew alongside rising debt reliance. Profitability and EPS improved, but RoNW fell. Assets increased, liquidity weakened, and a lower inventory turnover ratio suggests slower sales or inefficiencies. 

• Revenue Trend: The revenue decreased from ₹22,791.80 lakhs in March 2023 to ₹18,635.85 lakhs in March 2024. The revenue for the current year’s 3-month period ending June 2024 is INR 6,558.58 lakhs.
• Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing. 
• Profitability: The profit after tax (PAT) increased from ₹293.57 lakh in March 2023 to ₹484.49 lakh in March 2024, boosting investor confidence. The profit for the period ending June 2024 is ₹360.33 lakh. 
• Earnings per Share (EPS): The diluted EPS increased from ₹3.98 in March 2023 to ₹6.04 in March 2024, reflecting higher earnings per share for investors. The diluted EPS for the period ending June 2024 is ₹3.79. 
• Return on Net Worth (RoNW): The RoNW has reduced from 20.48% to 13.44%, indicating a decrease in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations. 
• Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover   Ratio, which might suggest slower sales or inefficient inventory management. 

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Beezaasan Explotech IPO Financial Analysis 

Beezaasan Explotech Limited IPO Peer Comparison 

Beezaasan Explotech Limited maintains steady growth with competitive earnings. While trailing Premier Explosives and Solar Industries in revenue and profitability, it remains focused on expansion, efficiency, and strengthening its market position. 

Beezaasan Explotech Ltd IPO Objective 

The main objective of Beezaasan Explotech Limited is to expand its manufacturing and storage facilities, acquire machinery, purchase a commercial vehicle, and manage debt repayment to support growth and operational efficiency. 

1. 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: The company intends to utilise INR 3.87 crores to expand its manufacturing facilities in Mahisagar, Gujarat, enhancing production capacity for Slurry Explosives, Emulsion Explosives, and Detonating Fuse to meet rising customer demand. 

2. Funding of Capital expenditure towards purchase of Plant and Machineries for Expansion of existing manufacturing unit for Detonating Fuse Plant, Emulsion Bulk Explosive Plant and Emulsion Explosive-3 Plant at the existing Manufacturing facility situated at Bhanthala, Mahisagar, Gujarat:  The company plans to utilise INR 23.04 crores for purchasing plant and machinery to expand production capacity at its Mahisagar, Gujarat facility, enhancing efficiency, reducing lead times, and meeting increasing industry and customer demand. 

3. Funding of Capital expenditure towards civil construction required for expansion of additional magazine (Storage) facility required for Emulsion Cartridge Explosives and Detonating Fuse at the existing location situated at Felsani, Gujarat: The company aims to utilise INR 2.03 crores for constructing an advanced explosive storage facility at its Felsani Village site in Gujarat, ensuring safety, regulatory compliance, and enhanced storage capacity for hazardous materials. 

4. Purchase of Commercial Vehicle: The company plans to utilise INR 1.44 crores to purchase a high-capacity commercial vehicle to enhance logistics efficiency, reduce reliance on third-party transport, and ensure timely delivery of full-load consignments to customers. 

5. Repayment/prepayment of all or certain of the borrowings availed by the company: The company intends to utilise INR 18 crores for repayment or prepayment of certain borrowings to reduce debt, lower servicing costs, improve the debt-to-equity ratio and enable future business expansion and growth opportunities. 

6. General Corporate Purposes: The company will deploy the balance of funds for general corporate purposes, including operating expenses, project development, business expansion, marketing, and unforeseen exigencies to enhance growth and strengthen operational efficiency. 

Beezaasan Explotech IPO Risks And Challenges 

Beezaasan Explotech Limited’s risk includes regulatory compliance challenges, high registration costs, hazardous material handling, supply chain dependencies, price fluctuations, and operational disruptions, all impacting growth, market position, profitability, and financial stability. 

• The company manufactures explosives, requiring strict regulatory approvals. Compliance challenges, high registration costs, and quality standards impact operations, necessitating continuous approvals to sustain growth, market position, and financial stability. 
• Their business involves hazardous materials like ammonium nitrate, posing risks of accidents, property damage, and supply disruptions. Despite safety measures and insurance, mishandling can impact operations, revenues, and financial stability. 
• Their business relies on raw material availability, cost, and quality. Dependence on suppliers, price fluctuations, and absence of long-term contracts may disrupt operations, impact profitability, and challenge financial stability and customer commitments. 

Beezaasan Explotech Ltd IPO – Industry & Market Potential 

Smart factories leverage IoT, automation, and robotics to enhance efficiency, flexibility, and productivity. They reduce costs, improve quality, and optimise resources. The market, valued at $129.74 billion in 2022, is projected to grow at 9.52% CAGR. 

India’s manufacturing exports hit a record $447.46 billion in FY23. With strong GDP growth, rising e-commerce exports, and a trillion-dollar potential by 2025-26, India is poised to become a global manufacturing hub by 2030. 

India is a key manufacturing hub attracting global investments. With GST implementation, industrial corridors, and initiatives like SAMARTH Udyog Bharat 4.0, the sector aims to reach US$ 1 trillion by 2025, boosting competitiveness and growth. 

Beezaasan Explotech Limited IPO – Type of Offer 

Beezaasan Explotech Limited is coming up with an IPO with a fresh issue of 34,24,800 shares worth INR 59.93 crores. The company aims to expand manufacturing facilities, enhance storage capacity, acquire machinery and vehicles, repay borrowings, and fund corporate needs. 

Beezaasan Explotech IPO Offer Size 

The offer size of Beezaasan Explotech Limited is INR 59.93 crores, consisting of a fresh issue of 34,24,800 shares. The company aims to expand manufacturing facilities, enhance storage capacity, acquire machinery and vehicles, repay borrowings, and fund corporate needs. 

Beezaasan Explotech Limited IPO Allotment Structure 

Beezaasan Explotech Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 1,76,000 shares are reserved for market makers. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Market Maker Reservation: A portion of shares, i.e. 1,76,000 shares, are reserved for market makers. 

How to apply for Beezaasan Explotech IPO?

To apply for the Beezaasan Explotech Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Beezaasan Explotech Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Beezaasan Explotech Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Beezaasan Explotech IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Beezaasan Explotech Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Beezaasan Explotech Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Beezaasan Explotech Limited IPO:

● Registrar’s Website: Visit the website of Kfin Technologies Limited, the registrar of the Beezaasan Explotech Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

● BSE SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Read more about Beezaasan Explotech IPO Allotment Status

Beezaasan Explotech Ltd IPO Offer Registrar

The registrar for the Beezaasan Explotech Limited IPO is Kfin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

KFIN TECHNOLOGIES LIMITED

Selenium Tower-B Plot No.31 & 32 Gachibowli, 

Financial District, Nanakramguda Serilingampally, 

Hyderabad 500032 Telangana, India 

Tel: +91 40 6716 2222

Email: [email protected]

Website: www.kfintech.com 

Beezaasan Explotech IPO – FAQs