Regaal Resources Limited (RRL) has captured strong investor attention with its Initial Public Offering (IPO), which witnessed an overwhelming response and got subscribed 48.44 times on its final day of bidding. This strong interest highlights the confidence of institutional, retail, and high-net-worth investors in the company’s future growth and profitability. The IPO opened for subscription on August 12, 2025, and closed on August 14, 2025, with shares scheduled to list on the BSE and NSE on August 20, 2025.

The company, headquartered in India, is a leading agro-processing firm primarily engaged in the manufacturing of maize starch, specialty starches, food-grade starches, and starch derivatives. Its products cater to diverse industries such as food & beverages, pharmaceuticals, textiles, and packaging. With a strong focus on quality and innovation, Regaal Resources has positioned itself as a trusted player in the starch manufacturing industry.

IPO Details and Structure

The Regaal Resources IPO is a Book Built Issue worth ₹306 crore. It comprises a fresh issue of 2.05 crore shares valued at ₹210 crore and an Offer for Sale (OFS) of 0.94 crore shares worth ₹96 crore. The price band has been fixed between ₹96 and ₹102 per equity share. At the upper end of the band, the company’s market capitalization will stand at approximately ₹1,047.79 crore.

The IPO lot size has been kept at 144 shares, requiring retail investors to make a minimum investment of ₹14,699, while HNIs must invest in at least 14 lots (2,016 shares) amounting to ₹2,05,632. The issue is managed by Pantomath Capital Advisors Pvt. Ltd. and Sumedha Fiscal Services Ltd., with MUFG Intime India Pvt. Ltd. acting as the registrar.

Subscription Status

The IPO subscription numbers reflect strong market confidence:

• The Qualified Institutional Buyers (QIBs) segment saw extremely high participation, indicating institutional belief in the company’s fundamentals.

• Non-Institutional Investors (NIIs) and Retail Individual Investors (RIIs) also oversubscribed their portions multiple times.

• By the close of August 14, 2025, the IPO was subscribed 48.44 times overall, making it one of the most sought-after issues of the season.

This heavy oversubscription shows a mix of growth potential, attractive valuation, and sectoral demand, drawing widespread investor interest.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for the Regaal Resources IPO has been trending at around ₹14, suggesting an expected listing price of ₹116 per share. This translates to potential listing gains of 13.73% over the issue price of ₹102.

However, it is important to note that the GMP is not an official indicator of listing performance as it depends on unregulated demand and supply in the grey market. Investors are advised to consider it only as an informal sentiment gauge and not as a guarantee of listing performance.

Anchor Investors

Ahead of the IPO opening, Regaal Resources successfully raised ₹693.29 crore from anchor investors by allocating 89,99,856 equity shares at ₹102 per share. The participation of marquee anchor investors boosted market sentiment and provided a strong foundation for the IPO launch. Anchor allocations were carved out of the QIB portion, which further highlights institutional appetite for the company’s shares.

Company Background and Business Model

Regaal Resources Limited has emerged as a key player in the starch manufacturing segment, focusing on quality, innovation, and customer-centric solutions. The company offers a wide range of products including:

• Maize Starch: Used in textiles, paper, and adhesive industries.

• Food Grade Starch: Catering to the food and beverages sector.

• Specialty Starches: Offering customized applications in pharma, packaging, and other industries.

• Starch Derivatives: Including modified starches that meet specific industrial requirements.

The company’s unique selling proposition (USP) lies in its diversified product mix and ability to serve multiple industries, reducing dependence on any single sector.

The promoters, Mr. Anil Kishorepuria and Mr. Karan Kishorepuria, bring nearly three decades of combined experience across manufacturing, real estate, retail, and trading. Under their leadership, the company has not only expanded its product base but also strengthened supplier and customer relationships.

Financial Performance

The company’s financials reflect consistent growth over the past three fiscal years:

• Revenue from Operations:

  • FY2025: ₹9,175.76 million

  • FY2024: ₹6,010.77 million

  • FY2023: ₹4,886.74 million

• EBITDA:

  • FY2025: ₹9,051.83 million

  • FY2024: ₹6,002.42 million

  • FY2023: ₹4,848.78 million

• Profit After Tax (PAT):

  • FY2025: ₹476.68 million

  • FY2024: ₹221.42 million

  • FY2023: ₹167.58 million

These numbers demonstrate robust revenue growth and improving profitability, highlighting operational efficiency and market demand for the company’s products.

Valuation and Ratios

Regaal Resources IPO pricing suggests a fair valuation:

• Pre-Issue EPS (FY24): ₹6.05

• Post-Issue EPS (FY24): ₹4.64

• Pre-Issue P/E Ratio: 16.85x

• Post-Issue P/E Ratio: 21.98x

• Industry Average P/E Ratio: ~29x

Return Ratios:

• ROCE (FY24): 14.17%

• ROE (FY24): 20.25%

• RoNW: 2.25%

These indicators suggest that the IPO is reasonably priced compared to industry peers, leaving scope for growth and value creation post-listing.

IPO Objectives

The company plans to use the net proceeds from the IPO as follows:

1. ₹1,590 million for repayment or prepayment of certain outstanding borrowings.

2. Balance for general corporate purposes including working capital, expansion, and operational efficiency improvements.

Debt reduction will strengthen the company’s balance sheet and improve financial flexibility.

Allotment and Listing

The Regaal Resources IPO allotment date is August 18, 2025. Investors can check their allotment status online through the registrar’s website by entering details such as Application Number, PAN, or DP Client ID. Successful applicants will see shares credited to their Demat accounts before the listing date.

The shares are expected to list on August 20, 2025, on both BSE and NSE. Given the oversubscription and positive GMP trends, the listing is likely to attract significant investor interest.

Should You Apply?

Based on financial performance, valuation, sectoral outlook, and market demand, the Regaal Resources IPO offers short-term listing gains potential. With a GMP of ₹14 and oversubscription at 48.44 times, the listing premium could be significant.

However, investors should note that agro-processing is subject to raw material price volatility, regulatory challenges, and competition, which could impact long-term growth. Hence, risk-tolerant investors can apply for listing gains, while conservative investors may adopt a wait-and-watch strategy.

✅ Final Verdict: The Regaal Resources Limited IPO appears fairly valued with strong demand, making it a good opportunity for investors seeking short-term listing gains. Long-term investors should evaluate industry risks before committing.

The Upcoming IPOs in this week and coming weeks are Mangal Electrical Industries, LGT Business Connextions, Vikram Solar, Gem Aromatics, Studio LSD, Shreeji Shipping Global, Patel Retail.

The Current active IPO are Regaal Resources, Mahendra Realtors and Infrastructure.

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