Beezaasan Explotech SME IPO to open on February 21, price band at Rs 165-175 per share

Beezaasan Explotech IPO

Explosives and explosives accessories maker Beezaasan Explotech has decided to launch its initial public offering on February 21, with a price band at Rs 165-175 per share. This would be the second SME IPO hitting Dalal Street next week along with HP Telecom India.

The company, which primarily produces cartridge explosives catering to cement, mining, and defence industries, intends to raise Rs 59.93 crore via initial share sale of 34.24 lakh equity shares at the upper price band.

The book-built issue comprises of solely fresh issue by the company, closing on February 25. The IPO share allotment will be finalised by February 27.

Investors can start trading in Beezaasan Explotech shares on the BSE SME effective March 3.

Half of the public issue size has been reserved for qualified institutional buyers, 15 percent for non-institutional investors, and the remainder 35 percent for retail investors.

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The Gujarat-based company will utilise IPO proceeds 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 at Mahisagar, Gujarat.

Further, the fresh issue money will be used for the expansion of an additional magazine (Storage) facility for the emulsion cartridge explosives and detonating fuse at Felsani (Gujarat), purchase of commercial vehicle, repaying debt, and general corporate purposes.

Smart Horizon Capital Advisors is acting as the sole book running lead manager to the issue.