Regaal Resources made a strong debut on the stock exchanges today, August 20, 2025, listing at a significant premium over its IPO price. The IPO, which closed on August 14, 2025, saw an overwhelming response from investors and was oversubscribed by almost 160 times.
Listing Performance
On the NSE, Regaal Resources shares listed at ₹141, a premium of 38.24% over the IPO price of ₹102. The debut on BSE was even stronger, with the stock opening at ₹141.80, a 39% increase over the IPO price. However, after the initial surge, the stock experienced some selling pressure. As of around 11:30 AM, the share price had slipped approximately 6% from the listing price on BSE, trading at ₹135.40. Despite this dip, the stock was still trading at a premium of over 32% compared to the IPO issue price.
IPO Details and Subscription
The Regaal Resources IPO aimed to raise ₹306 crore through a fresh issue of shares worth ₹210 crore and an offer for sale (OFS) of ₹96 crore. The IPO price band was set at ₹96 to ₹102 per share. The strong subscription numbers were driven by significant interest from all investor categories. Non-Institutional Investors (NIIs) oversubscribed their portion by 356.72 times, Qualified Institutional Buyers (QIBs) by 190.96 times, and retail investors by 57.75 times. Ahead of the IPO opening, the company had secured ₹91.80 crore from anchor investors.
Grey Market Premium (GMP)
Prior to the listing, the Grey Market Premium (GMP) for Regaal Resources IPO indicated a strong debut. Market experts had estimated a GMP of around ₹29 per share, suggesting a listing price of approximately ₹131, which is a 28.5% premium over the IPO price.
Use of Proceeds
Regaal Resources plans to use the net proceeds from the IPO towards repaying or prepaying certain outstanding loans amounting to ₹159 crore and for general corporate purposes.
Company Overview
Regaal Resources Limited, incorporated in 2012, is involved in the manufacturing of maize specialty products in India. The company operates a maize milling facility with zero liquid discharge and a crushing capacity of 750 tonnes per day. Its product portfolio includes maize starch, modified starch, gluten, germ, enriched fiber, and fibre. Regaal Resources serves various industries, including food products, paper, animal feed, and adhesives, and also exports to Nepal and Bangladesh. The company reported robust financial growth, with a 53% increase in revenue and a 115% jump in profit after tax (PAT) for the fiscal year ending March 31, 2025.
Analysts' Views
Leading up to the IPO, several brokerages had a positive outlook on Regaal Resources. Factors contributing to the positive sentiment included the company's strategic location in a key maize-producing region, efficient procurement processes, diversified product mix, and expansion plans.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult with a qualified financial advisor before making any investment decisions.
