The IPO of Regaal Resources Ltd, a manufacturer of maize-based specialty products, closes today, August 14, 2025. The ₹306 crore IPO has garnered significant investor interest.
Subscription Status
As of the end of Day 2, the IPO was subscribed 26.40 times. The portion reserved for Non-Institutional Investors (NII) was oversubscribed by 67.77 times, followed by Retail Investors at 21.86 times, and Qualified Institutional Buyers (QIB) at 3.36 times. By mid-day of Day 2, the IPO had already achieved 15.64 times subscription. Retail investors had bid for 14.15 times the shares allocated to them. The strong subscription numbers indicate robust investor confidence in the company.
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Regaal Resources IPO has shown an upward trend. On August 13, 2025, the GMP was around ₹32-34, suggesting a potential listing price of ₹134-136 per share, based on the upper price band of ₹102. This translates to a listing gain of approximately 31.37% to 33.33%. However, it is important to note that GMP is an unofficial and speculative indicator and should not be the sole basis for investment decisions.
IPO Details
The IPO consists of a fresh issue of 2.06 crore shares aggregating to ₹210 crore and an offer for sale of 0.94 crore shares aggregating to ₹96 crore. The price band is fixed at ₹96 to ₹102 per share, with a face value of ₹5. Retail investors can apply for a minimum of 144 shares, amounting to ₹14,688 at the upper price band. The company intends to list its shares on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The tentative listing date is August 20, 2025.
Utilization of Funds
Regaal Resources plans to utilize ₹159 crore from the fresh issue towards repayment or prepayment of certain outstanding borrowings. The remaining funds will be used for general corporate purposes.
Company Overview
Incorporated in 2012, Regaal Resources Limited is a manufacturer of maize-based specialty products in India. The company has a manufacturing facility in Kishanganj, Bihar, with a crushing capacity of 750 tonnes per day (TPD). Regaal Resources produces maize starch, modified starch, co-products like gluten and fiber, and food-grade starches. The company is expanding its capacity to 1,650 TPD by Q4FY26, which will include the production of value-added products.
Financial Performance
Regaal Resources has demonstrated strong financial growth in recent years. The company's revenue grew at a CAGR of 34% between FY22 and FY25, reaching ₹915 crore in FY25. Net profit also surged at a CAGR of 22% during the same period, reaching ₹48 crore in FY25. For fiscal year 2025, Regaal Resources reported revenue of ₹917.58 crores against ₹601.08 crores in 2024. The company reported a profit of ₹47.67 crores.
Should You Apply?
Analysts have given neutral to positive ratings for the IPO. Anshul Jain, Head of Research at Lakshmishree Investment, assigned a "subscribe" tag, highlighting the company's strategic location, cost leadership, and strong revenue growth. The company's revenue grew at a 37% CAGR in FY23–25.
Factors to consider:
However, potential risks include customer concentration, raw material dependency, and a single plant location. Investors should consider these factors and their own risk appetite before making a decision.
