The initial public offering of SME IPO Beezaasan Explotech received a steady demand from investors on the second day of bidding on February 24, especially in light of the subdued equity market sentiment.
Subscription data from BSE shows that the issue has been subscribed 0.85 times, with investors bidding for 20.89 lakh shares via 1,057 applications as against the IPO size of 24.56 lakh shares.
Qualified Institutional Buyer (QIB) category seem to be showing strong interest for the shares of the manufacturer of explosives and explosives accessories, with their reserved portion booked 1.56 times on the second day. The portion set aside for non-institutional investors was subscribed 0.39 times, and that of retail investors 0.71 times.
Gujarat-based Beezaasan Explotech focuses on producing cartridge explosives (including slurry, emulsion and detonating explosives) and is looking to raise Rs 59.93 crore at the upper end of the price band of Rs 165-175 per share.
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The company intends to utilise IPO proceeds to purchase plant and machinery, and expand existing manufacturing facility at Bhanthala, Gujarat.
The funds raised will be utilised to expand an additional magazine and detonating fuse (storage) facility at the existing location in Felsani, Gujarat, along with purchase of commercial vehicle and repayment of debt.
The public issue opened on February 21 and will close on February 25, with Smart Horizon Capital Advisors acting as the book running lead manager to the IPO.
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