Regaal Resources IPO Launches: Everything You Need to Know

On August 12, 2025, Regaal Resources Limited opened its ₹306 crore IPO, marking a milestone for the Bihar-based maize starch manufacturer. With the subscription window running until August 14, investors are closely monitoring performance metrics, grey market indications, analyst ratings, and projected listing gains ahead of the listing date set for August 20.

Highlights of the IPO

Opening Day Subscription & GMP

• Day 1 overview:

  • Total subscription reached almost 6×, with Category-wise participation: Retail ~6×, NII ~11×, QIB ~3×.

  • Grey Market Premium (GMP) hovered around ₹23 above the ₹102 upper band, forecasting a ~22–23% listing upside.

• Day 2 surge:

  • Aggregated subscription soared to 26.4×, shown by record bids in NII (~67.8×) and retail (~21.85×) segments.

  • GMP climbed to ₹27–28, signaling a potential 26.5% listing gain.

• Day 3 figures:

  • As of early hours, total subscription reached 26.93×, with NIIs leading (~68.4×), retail (~22.6×), QIBs (~3.36×).

  • GMP stabilised near ₹27–28, reaffirming sky‑high market interest.

Company Snapshot & Objectives

About Regaal Resources

Founded in 2012 and headquartered in Kolkata, Regaal operates a state-of-the-art maize processing plant in Kishanganj, Bihar, with zero liquid discharge (ZLD). The facility, sprawling over 54 acres, crushes 750 tonnes per day (TPD) and caters to a diverse customer base in sectors like food, animal feed, paper, adhesives, and international markets in Nepal, Bangladesh, and Malaysia.

Financial snapshot (FY2025 vs FY2024):

• Revenue rose 52.5% to ₹917.6 crore from ₹601.1 crore.

• Net profit doubled to ₹47.7 crore from ₹22.1 crore.

• Revenue CAGR of ~37% between FY2023–25, and EBITDA margin rose from 8.3% to 12.3%, while PAT margin went from 3.4% to 5.2%.

IPO Proceeds and Use

• Fresh issue: ₹210 crore

• Offer for Sale (promoter stake): ₹96 crore (≈94.1 lakh shares)

• Plans to utilize ₹159 crore to repay debt, with remaining funds allocated for corporate purposes.

Offer Structure

Analyst Recommendations & Risk Factors

Broker Ratings

• Reliance Securities: Subscribe – Highlights operational edge, growth in capacity and margins.

• Anand Rathi: Subscribe for Long‑Term – Cites integrated facilities and ESG compliance.

• Canara Bank Securities: Subscribe (with caution) – Notes litigation risk and commodity pricing volatility.

• BP Equities, SMIFS, BNK, Lakshmishree: Subscribe – Justify based on capacity expansion, valuation, diversification, and location.

Key Risks

• Client and Vendor Concentration: Top 10 clients and suppliers (maize vendors) constitute significant volumes (50%+ of sales, 83%+ of cost).

• High Leverage: Debt‑to‑equity runs around 2.08×, far above peers.

• Negative Operating Cash Flows: FY24 (–₹22.5 Cr) and FY25 (–₹11.2 Cr) due to high inventory.

• Market & Regulatory Vulnerability: Susceptible to maize price swings and possible policy shifts in agri-processing incentives.

• Promoter History: Some promoter-related legal history exists, potentially impacting investor confidence.

Should You Apply?

Reasons to Consider

1. Robust Listing Gains Potential (~25–27%)

2. High Growth Trajectory – 50%+ top-line growth, margin expansion, and aggressive capacity ramp-up (750 → 1,650 TPD) 

3. Strategic Location & Sustainability Practices

4. Diversified Product Range & Global Market Reach

5. Reasonable Valuation – FY25 P/E ~16.9–22×, lower than peers ~36–44×.

Concerns to Weigh

• High Debt Load & negative cash flow could pressure finances if business slows.

• Vendor/Client Dependencies – Could disrupt operations.

• Commodity Risk & ESG Sensitivity

• Regulatory/Policy Volatility.

Quick Snapshot 

• IPO Size: ₹306 Cr (incl. ₹210 Cr fresh issue, ₹96 Cr OFS)

• Price Band: ₹96–102 per share; Lot size = 144 shares (~₹14.7k)

• Subscription (Day 3): ~27× overall, with retail ~22×, NII ~68×, QIB ~3.3×

• GMP Signal: ₹27–28 above band — 26.5–27% potential listing gain

• Listing Date: August 20, 2025, on BSE & NSE

• Top Brokers: Mostly positive, with cautious coverage by two

• Rating Tiers:

  • Subscribe: Reliance, Anand Rathi, BP Equities, SMIFS, BNK, Lakshmishree

  • Subscribe (with caution): Canara Bank, Marwadi

• Core Strengths: Strong growth, capacity scale-up, diversified products, ZLD plant

• Risks: Debt, cash flow, client/vendor dependency, commodity prices, policy changes

Final Thoughts

The Regaal Resources IPO is attracting significant attention, driven by compelling growth metrics and market sentiment. If you're aiming for short-term upside, the elevated GMP (~25%) makes it look promising. Long-term investors might find value in its growth story, capacity expansion, diversified product base, and improved balance sheet post-debt repayment.