Beezaasan Explotech is set to debut on 21 February 2025 as the BSE SME platform through an initial public offering (IPO). As a company operating in the explosives manufacturing sector, Beezaasan Explotech is positioning itself to capitalize on India’s growing infrastructure and mining activities. The IPO aims to strengthen the company’s market presence, enhance production capacity, and improve financial stability. Here’s a deep dive into the Beezaasan Explotech IPO review from an investor’s perspective, with a focus on its business, industry landscape, financial standing, and competitive edge.
Table of Contents
#1 Beezaasan Explotech IPO Review: Company Overview & Product Portfolio
Established in 2013, Beezaasan Explotech specializes in the manufacturing of industrial explosives, catering primarily to the mining and infrastructure industries. The company converted from a private limited to a public limited entity in May 2024 to facilitate its IPO. With a registered office in Gandhinagar, Gujarat, and a corporate office in Himatnagar, the company operates at a strategic location benefiting from logistical advantages. The company’s management team has extensive experience in the industry, ensuring strong governance and business execution.
Beezaasan Explotech manufactures a range of industrial explosives, including bulk explosives, cartridge explosives, and detonators, serving mining, construction, and defense industries. Given India’s focus on infrastructure and mineral extraction, demand for industrial explosives is projected to remain strong, making this IPO particularly relevant to investors tracking growth in these sectors. The company also invests in research and development to create innovative solutions for safer and more efficient explosive applications, ensuring compliance with international safety standards.
#2 Beezaasan Explotech IPO Review: Manufacturing Capacity
Beezaasan Explotech has a licensed manufacturing capacity of 45,000 metric tons for slurry explosives, supported by facilities that include a slurry explosives plant, a raw material store, an aluminum store, a blasting shelter, a destruction yard, a quality control lab, and a testing area. The company is also licensed to produce 11,400 metric tons of emulsion explosives across two manufacturing plants, along with associated facilities. Additionally, Beezaasan Explotech holds a license to manufacture 51 million meters of detonating fuse, with infrastructure that includes a transit shed, spinning buildings, and a PETN drying area, all equipped with connected facilities.
#3 Beezaasan Explotech IPO Analysis: Business Model
The company operates on a B2B model, supplying its products directly to mining companies, construction firms, and government agencies. Its revenue model revolves around long-term contracts with established clients, ensuring consistent cash flow and reducing market volatility risks. The company has built strong relationships with government institutions and private firms, giving it an advantage in securing long-term contracts. Additionally, Beezaasan Explotech has implemented cost-control measures to improve margins and sustain profitability.
#4 Beezaasan Explotech IPO Review: IPO Offer Details & Structure
- Issue Period: 21 – 25 February 2025
- Issue Price: INR 165 – 175 per share
- Fresh Issue: Up to 34,24,800 equity shares
- Total Issue Size: INR 56.51 – 59.93 crore
- Face Value: INR 10 per share
- Listing Exchange: BSE SME
- Market Maker Reservation: 1,76,000 equity shares
- Net Public Issue: 32,48,800 equity shares
The IPO is a 100% fresh issue, meaning that all proceeds will be directed toward the company’s expansion, working capital, and other operational enhancements. Investors should take note of the company’s utilization plans to evaluate the potential for value creation post-listing.
#5 Indian Explosives Industry Overview
India’s industrial explosives sector is projected to grow at a steady rate, driven by increasing mining activities and infrastructure expansion. Government initiatives like ‘Make in India’ and infrastructure-focused budgets are expected to boost demand in the coming years. With coal, limestone, and iron ore mining expected to remain critical to India’s industrial ecosystem, the demand for explosives remains strong. Beezaasan Explotech is well-positioned to benefit from these trends.
#6 Beezaasan Explotech IPO Review: Financial Highlights & Margins
| FY 2022 | FY 2023 | FY 2024 | H1 FY 2025 | |
| Revenue | 140.95 | 227.92 | 186.36 | 100.69 |
| Expenses | 138.13 | 224.98 | 181.38 | 90.36 |
| Net income | 2.47 | 2.94 | 4.84 | 7.93 |
| Margin (%) | 1.75 | 1.29 | 2.60 | 7.88 |
| ROCE (%) | 15.42 | 12.90 | 16.20 | 17.79 |
| EBITDA (%) | 4.10 | 3.45 | 5.67 | 13.31 |
| Debt/Equity | 2.29 | 3.02 | 1.59 | 1.27 |
The financials indicate consistent growth in revenue and profitability, showcasing the company’s solid business fundamentals. Investors should review the profit margins and return on investment metrics to understand the company’s financial strength better.
#7 Beezaasan Explotech IPO Analysis: Comparison with Listed Peers
Beezaasan Explotech faces competition from established players like Solar Industries India and Premier Explosives. However, its niche product offerings and cost-efficient manufacturing provide a competitive edge. While larger players dominate the segment, Beezaasan’s entry into the stock market offers investors an opportunity to tap into a high-growth company at an early stage. Investors should assess valuation multiples in comparison to listed peers to determine the attractiveness of the IPO pricing.
| Company | PE ratio | EPS | RONW (%) | NAV |
| Beezaasan Explotech | 28.97 | 6.04 | 20.89 | 28.94 |
| Premier Explosives | 73.57 | 5.27 | 12.91 | 40.95 |
| Solar Industries | 95.43 | 92.38 | 26.48 | 365.26 |
#8 Beezaasan Explotech IPO Analysis: SWOT Analysis
Strengths:
- Strong market demand for industrial explosives
- Established client base with long-term contracts
- Strategically located manufacturing facility
- Experienced management team
Weaknesses:
- Dependence on regulatory approvals for operations
- Limited brand visibility compared to larger players
- Vulnerability to fluctuations in raw material costs
Opportunities:
- Expansion into new geographies and defense sector
- Rising infrastructure and mining activities
- Potential to increase exports
Threats:
- Market volatility in raw material prices
- Regulatory risks associated with explosive manufacturing
- Competition from larger established players
#9 Beezaasan Explotech IPO Review: Geographical Presence & Sales
Beezaasan Explotech primarily serves customers in Gujarat and neighboring states. However, the IPO proceeds may be used for expansion into other high-demand regions, enhancing its market footprint. The company’s long-term strategy includes tapping into newer industrial hubs and increasing its market penetration across India. The company has a PAN India presence, serving a clientele across 11 states and 2 Union Territories in the domestic market, based on sales recorded for the financial year ending 31 March 2024.
#10 Beezaasan Explotech IPO Analysis: Risks & Threats
- Regulatory Risks: Compliance with safety and environmental regulations is critical.
- Market Competition: Larger competitors may impact pricing power.
- Raw Material Price Fluctuations: Could affect profit margins.
- Economic Slowdown: A downturn in infrastructure and mining activities could impact demand.
Conclusion
Beezaasan Explotech’s IPO presents an interesting opportunity for investors looking to gain exposure to India’s rapidly expanding industrial sector. With a growing business, strong financials, and a strategic expansion plan, the company is well-positioned for long-term growth. Investors should, however, assess the regulatory and competitive landscape before making an investment decision. The IPO provides a chance to invest in a growing industrial player with promising prospects.