Regaal Resources IPO listing bonanza: Shares debut at robust 39% premium on NSE and BSE

Shares of Regaal Resources made its Dalal Street debut with a premium of 39% on Wednesday, August 20, after the issue drew strong investor demand with a subscription of nearly 160 times.

The stock listed at ₹141.80 on the BSE, marking a premium of 39% over the issue price of ₹102 per share. Similarly, it made its trading debut at ₹141 on NSE.

The robust listing was above grey market estimates, where Regaal Resources shares quoted a premium of 25% in the unregulated market. Most investors track the grey market premium (GMP) to get an idea of the listing price.

Narendra Solanki, Head – Fundamental Research, Investment Services, Anand Rathi Shares and Stock Brokers, advised investors to hold the issue for the long term post listing.

"Operations are capital intensive and subject to agri cycles with limited pricing power. However, its location, customer base and expansion support long-term scalability," he said.

The ₹306-crore issue had opened for bidding between August 12 and August 14 and attracted strong demand across categories, with QIBs subscribing 190.97 times, NIIs a massive 356.73 times, and the retail category 57.75 times.

Regaal Resources had garnered Rs 91.8 crore from anchor investors, ahead of the IPO.

The Kolkata-headquartered company sold its shares in a fixed price band between ₹96 and ₹102.

The public offer included a fresh issue of 2.06 crore shares worth ₹210 crore and an offer for sale of 0.94 crore shares aggregating to ₹96 crore by the promoter group.

Post-issue, the promoters' stake will reduce to about 71% from 100%.

Of the fresh issue proceeds, Rs 159 crore will go towards repayment or pre-payment of certain borrowings. The company operates a zero liquid discharge maize milling facility catering to customers in food products, paper, animal feed and adhesives across India, and in export markets such as Nepal and Bangladesh.

Company overview

Regaal Resources is among India's fastest-growing maize-based specialty product manufacturers and ranks as the second-largest player in eastern India with a maize milling capacity of 750 tonnes per day (TPD).

Company serves a diverse base of 261 customers as of FY25, incl both domestic and international clients. Prominent clients include Emami Paper Mills Ltd, Manioca Food Products Pvt Ltd, Century Pulp & Paper, Aarnav Sales Corporation, AMV Sales Corporation, Eco Tech Papers, Genus Paper Board, Krishna Tissues, Maruti Papers and M/s Vasu and Sons.

Regal Resource posted a net profit of ₹47.67 crore with a revenue of ₹917.58 crore with a financial year ended on March 31, 2025. The company clocked a net profit of ₹22.14 crore with a revenue of ₹601.08 crore for the year 2023-24.

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