Regaal Resources IPO subscription begins; GMP at 23% — should you apply?

Regaal Resources Ltd., one of the country's largest maize-based specialty product manufacturers, launched its ₹306 crore IPO (initial public offering) on Tuesday, August 12. The three-day bidding process will conclude on August 14.

The Kolkata-headquartered company is selling its shares in a fixed price band between ₹96 and ₹102. Investors can bid for a minimum of 144 shares and in multiples thereof.

Considering the upper price band, the company's implied market capitalisation stands at around ₹9,985 crore.

Regaal Resources IPO: Brokerages view

Regaal Resources' planned capacity expansion, diversification into higher-margin modified starch and derivatives, entry into white labelling, and strategic market penetration in both domestic and export markets position it well for long-term growth, Reliance Securities said while adding a 'Subscribe' rating to the IPO.

Ventura Securities also recommended a 'Subscribe' rating for Regaal Resources as it expects margins to improve with debt reduction, capacity expansion and new geographies.

Given the strong fundamentals and growth prospects, Swastika Investmart said that Regaal Resources is a promising candidate for long-term investors with a higher risk tolerance. The valuation appears reasonable when compared to its peers. Investors shall prepare to navigate the risks, it said, advising investors to 'Subscribe' to the issue.

Regaal Resources IPO: Issue details

The public offer includes 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, ₹159 crore will go towards repayment or pre-payment of certain borrowings.

Regaal Resources IPO: GMP today

In the unlisted market, shares of Regaal Resources are quoting a premium of 22.55% today.

However, it is important to note that grey market premiums are just an indicator of how the company's shares are stacked up in the unlisted market and are subject to change rapidly.

Regaal Resources IPO: Anchor book

Regaal Resources mobilised around ₹92 crore from anchor investors, a day before the issue launch.

Taurus Mutual Fund, VPK Global Ventures Fund, Meru Investment Fund PCC-Cell 1, Benami Capital, Sunrise Investment Opportunities Fund, Authum Investment and Infrastructure Fund and Holani Venture Capital Fund participared in the anchor round.

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.

Book running lead managers

Pantomath Capital Advisors, Sumedha Fiscal Services are the book running lead managers and MUFG Intime India is the registrar of the issue.

The allotment for the Regaal Resources IPO is expected to be finalised on August 18, while the company's shares will be listing on BSE, NSE with a tentative listing date fixed as August 20.

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