• Fresh Issue Size: It provides a fresh issue size of 34,24,800 equity shares, each with a face value of Rs. 10.

• Price Range: The price band is fixed from Rs. 165 - 175 per equity share.
• Issue Type: The IPO is a 100% Book- built issue.
• Subscription date: The issue period begins on February 21st, 2025 and ends on February 25th, 2025.
• Lot size: It provides a lot size of 800.
• Listing Date: The IPO is going to be listed on March 3rd, 2025.
• Stock Exchange: The IPO is going to be listed on the emerge platform of BSE Limited.

The company with the help of this IPO aims to utilize the net proceeds to meet capital for the expnsion of its existing manufacturing units and storage facilities, the purchase of new Plant, Machinery and commercial vehicles and repayment of its borrowings.

The table below (in lakhs) stipulates the restated Financial Information of the company over the last three fiscal years for the period ended on 30 September 2024.

The use of explosive products for many industrial and material purposes has significantly increased.

Globally, The largest consumers of explosives in industrial applications are China, the United States, South Asia and Eurasia.

In India the mining industry as well as the construction industry in miscellaneous applications consumes a significant volume of explosives products.

Metal mining consumes the highest number of industrial explosives and its global demand growth is estimated to increase at 1.7% per year between 2024–29. The Indian mining industry adds a significant value to the economy, As of 2022, the number of reported mines in India was estimated at 1,319.

India also ranks fourth in global iron ore production and the mineral production was estimated at Rs. 1,18,246 crore in 2023. India's mining GDP has also increased from Rs. 76,877 crore in the third quarter of 2023 to Rs. 82,680 crore in the third quarter of 2024.

The government has also taken many initiatives like making amends to the Mines and Minerals (Development and Regulation) Act,1957, PLI Scheme for domestic productions, District Mineral Foundation (DMF), Export duties on irons ores and steels, MOU with many countries etc.

Domestic demand and exports are projected to increase and play a significant role in driving the industry's expansion and its contribution to India’s GDP in the future. 

• The company has been in the explosive manufacturing business since 2013 with its manufacturing facility located in Gujarat that is spread over 40,68,876.50 Sq. Ft. It is equipped with a comprehensive range of KP Machines, Strapping Machines, PLC Control Panel etc. It also has a storage facility with a total area of 20,37,382.19 Sq. Ft

• The company has established a standing relationship with key Customers & Suppliers, with a strong and experienced management team.
• The company has shown significant growth in the last three years increasing its profit after tax from Rs.274.25 lakhs in 2022 to Rs. 486.62 lakhs in 2024 (with Rs. 832.86 lakhs as of 30.09.2024).
• The company seeks to improve its operational efficiency with the implementation of new innovative techniques and make a strong presence in the market.

• The company is in the manufacturing and supplying of products that belong to a highly regulated sector, failure to obtain proper registration or sanctions of its products may adversely affect the company’s operations and financial conditions.
• The company uses ammonium nitrate as a raw material to manufacture some of its products which is hazardous in nature, any accidents caused by the use of this hazardous raw material and products, may lead to consequent damages which could affect the company's operations.
• The company primarily depends on its suppliers for the supply of its raw materials and does not have any long-term agreements with its suppliers, any failure to retain these suppliers may adversely affect the company’s operations and financial conditions.
• The company and its promoters and directors are facing certain tax proceedings, any adverse outcome of these pending litigation may affect the business, resulting in loss of operations and financial condition.

The use of explosive products by many industries especially in the mining sector has significantly increased. India’s mineral production accumulated approximately Rs. 1,18,246 crore in 2023 and the mining GDP stood at Rs 82,680 crore as of the third quarter of 2024.

The demand for explosives by these industries will significantly remain high in the coming years.

The company has significantly grown and has made healthy revenue over the last three years however, the company also faces certain risks that prospective investors should assess before investing. 

The company aims to utilize the net proceeds raised from the IPO to purchase and upgrade its equipment and machinery, expand its facilities and implement strategic business developments.

The company has proven to show strong fundamentals by generating healthy returns in the last three fiscal years.

Potential investors should analyze the risks given in the RHP prospectus before investing.