Introduction
The IPO wave continues to roll, and the Regaal Resources IPO is the latest to hit the markets. Opening on August 12, 2025, this ₹306 crore mainboard issue comes from a fast-growing agro-processing company based in Bihar. With strong financials and a strategic edge in raw material sourcing, the company is attracting attention from both retail and institutional investors.
Regaal Resources operates a 750 TPD maize crushing facility with zero liquid discharge, spread across 54 acres. The company exports to Nepal and Bangladesh and serves top Indian clients like Emami Paper and Century Pulp & Paper. Its diverse product range includes maize starch, modified starch, gluten, germ, and food-grade starches.
The Regaal Resources IPO includes a fresh issue and an offer for sale. Proceeds will be used mainly to repay debt and fund corporate needs. But is this IPO a good bet for your portfolio? Let’s explore the offer details, financials, and key business drivers.
Regaal Resources IPO Details: Everything You Need to Know
The Regaal Resources IPO is a ₹306 crore mainboard issue comprising a fresh issue and offer for sale. With a strong presence in the agro-processing sector and robust demand across industries, the company aims to raise capital to reduce debt and support its business operations. The IPO will be listed on both the BSE and NSE.
IPO Details
| IPO Particulars | Details |
|---|---|
| IPO Open Date | August 12, 2025 |
| IPO Close Date | August 14, 2025 |
| Listing Date (Tentative) | August 20, 2025 |
| Face Value | ₹5 per share |
| Price Band | ₹96 to ₹102 per share |
| Lot Size | 144 Shares |
| Total Issue Size | 3,00,00,235 shares (₹306 Cr) |
| Fresh Issue | 2,05,88,235 shares (₹210 Cr) |
| Offer for Sale (OFS) | 94,12,000 shares (₹96 Cr) |
| Issue Type | Book Building |
| Listing At | BSE, NSE |
| Pre-Issue Shareholding | 8,21,35,940 shares |
| Post-Issue Shareholding | 10,27,24,175 shares |
| Lot Size (Retail Minimum) | 1 lot = 144 shares (₹14,688) |
IPO Timeline
| Event | Date |
|---|---|
| IPO Opening Date | Tuesday, August 12, 2025 |
| IPO Closing Date | Thursday, August 14, 2025 |
| Allotment Finalization | Monday, August 18, 2025 |
| Refunds Initiation | Tuesday, August 19, 2025 |
| Shares Credited to Demat | Tuesday, August 19, 2025 |
| Listing Date | Wednesday, August 20, 2025 |
| UPI Mandate Cut-off Time | 5 PM, August 14, 2025 |
Regaal Resources IPO Objectives
Regaal Resources plans to utilize the IPO proceeds primarily to strengthen its balance sheet and support its long-term growth. Here’s a breakdown of where the fresh capital will go:
- Repayment or Prepayment of Borrowings (₹159 Cr)
A large chunk of the proceeds will go toward reducing the company’s existing debt. This move will improve financial stability and reduce interest costs, enhancing overall profitability. - General Corporate Purposes
The remaining funds will be used for general corporate activities such as working capital, expansion, marketing, and strengthening operational capabilities.
By addressing its debt burden and investing in core business functions, Regaal Resources aims to position itself for sustained growth in the competitive agro-processing market.
About Regaal Resources Ltd: India’s Maize Powerhouse
Regaal Resources Ltd. is one of India’s leading manufacturers of maize-based specialty products, and according to the F&S Report, it ranks among the largest in terms of crushing capacity. With a total installed capacity of 750 tonnes per day (TPD), the company plays a key role in India’s agro-processing sector, serving both domestic and export markets.
Headquartered in Kolkata, Regaal Resources operates a 54.03-acre maize milling facility in Kishanganj, Bihar, strategically located near one of the country’s major maize cultivation zones. This location ensures a steady supply of raw materials—especially during the Rabi season—and positions the company close to key domestic markets in East and North India, as well as export hubs like Nepal and Bangladesh, just 24 km and 235 km away respectively.
Diverse Product Portfolio
Regaal Resources manufactures a wide range of products that cater to various industries including food, paper, animal feed, and adhesives. Its product segments include:
- Native maize starch & modified starch: Used in food, paper, and industrial applications
- Co-products: Gluten, germ, enriched fiber, and fiber
- Value-added products: Maize flour, icing sugar, custard powder, baking powder
Below is a breakdown of product-wise revenue for the last three fiscal years:
Strong Infrastructure & Operational Scale
Regaal began operations in 2018 with a modest crushing capacity of 180 TPD. Through multiple expansion projects, it has scaled up to a capacity of 750 TPD as of May 31, 2025. The manufacturing unit also includes:
- Zero Liquid Discharge (ZLD) compliance
- Humidity-controlled storage silos (4 units of 10,000 MT each)
- Total maize storage capacity of 65,000 tonnes
- FSSAI license for food-grade products
According to F&S Report, Regaal’s facility is among the few maize wet milling plants in India with a ZLD setup.
Customer Base and Market Reach
The company has built strong relationships with major clients in India and abroad. Its client base includes leading names like:
- Emami Paper Mills Ltd.
- Century Pulp & Paper
- Genus Paper Board Pvt. Ltd.
- Kush Proteins Pvt. Ltd.
- Mayank Cattle Food Ltd.
Sales are driven by a diversified customer model that includes:
- End-product manufacturers
- Intermediate product manufacturers
- Distributors and wholesale traders
Revenue Contribution by Top Customers
| Customer Segment | FY25 (₹ Mn) | % of Revenue | FY24 (₹ Mn) | % of Revenue | FY23 (₹ Mn) | % of Revenue |
|---|---|---|---|---|---|---|
| Top 3 Customers | 1,522.06 | 16.80% | 1,238.45 | 20.71% | 1,389.63 | 28.87% |
| Top 5 Customers | 2,468.82 | 27.26% | 1,913.95 | 32.00% | 1,902.19 | 39.51% |
| Top 10 Customers | 4,117.38 | 45.46% | 3,009.27 | 50.32% | 2,653.10 | 55.11% |
Domestic and Export Presence
The majority of Regaal’s revenue comes from domestic operations. However, it has been expanding exports steadily to markets like Bangladesh, Nepal, and Malaysia.
Regaal Resources IPO Financials: Solid Growth with Expanding Margins
Regaal Resources Ltd. has posted strong financial performance over the last three years, showing impressive growth in revenue, profitability, and operational efficiency. This financial momentum forms a key part of the investment thesis for the Regaal Resources IPO.
Between FY23 and FY25, the company’s total income surged from ₹488.67 crore to ₹917.58 crore — a growth of nearly 88%. Meanwhile, Profit After Tax (PAT) more than doubled, jumping from ₹16.76 crore in FY23 to ₹47.67 crore in FY25. This robust performance reflects improving demand, operational scaling, and better cost management.
Regaal Resources Ltd – Financial Performance (₹ in crore)
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Total Assets | 371.52 | 585.97 | 860.27 |
| Total Income | 488.67 | 601.08 | 917.58 |
| EBITDA | 40.67 | 56.37 | 112.79 |
| PAT (Profit After Tax) | 16.76 | 22.14 | 47.67 |
| Net Worth | 104.41 | 126.61 | 235.41 |
| Reserves & Surplus | 102.92 | 125.12 | 202.44 |
| Total Borrowing | 188.93 | 357.21 | 507.05 |
The company’s EBITDA margin also improved significantly, indicating better efficiency:
- EBITDA Margin (FY25): 12.32%
- PAT Margin (FY25): 5.19%
Despite a rising debt profile, the company has managed to maintain a healthy return ratio, with ROE at 20.25% and ROCE at 14.17% for FY25.
Key Financial Ratios & KPIs
| KPI (FY25) | Value |
|---|---|
| Return on Equity (ROE) | 20.25% |
| Return on Capital Employed (ROCE) | 14.17% |
| Debt-to-Equity Ratio | 2.08 |
| EBITDA Margin | 12.32% |
| PAT Margin | 5.19% |
| Price to Book Value | 6.18x |
Regaal Resources IPO Valuation and Peer Comparison
At a price band of ₹95 to ₹102 per share, the Regaal Resources IPO values the company at a Price-to-Earnings (P/E) ratio of 17.58x on pre-issue earnings and 21.98x on post-issue diluted earnings. The Price-to-Book (P/BV) ratio stands at 6.18x, indicating a premium valuation compared to many of its listed peers in the agro-processing and starch manufacturing segment.
Despite this premium, the company justifies its valuation with a solid Return on Net Worth (RoNW) of 20.25%, which is significantly higher than most competitors.
Valuation Multiples
| Metric | Pre-IPO | Post-IPO |
|---|---|---|
| EPS (₹) | 5.80 | 4.64 |
| P/E Ratio (x) | 17.58 | 21.98 |
| Price to Book Value | – | 6.18x |
Regaal Resources IPO Peer Comparison
Regaal Resources appears fairly valued relative to its peers when we consider its post-IPO P/E of 21.98x and RoNW of 20.25%, which is significantly higher than other starch and agro-processing companies. While companies like Gulshan Polyols and Sanstar Limited command higher P/E ratios, their return on net worth is far lower than Regaal’s. This makes Regaal’s valuation look justified from a profitability standpoint.
| Company Name | EPS (Basic) | NAV (₹/share) | P/E (x) | RoNW (%) | P/BV Ratio |
|---|---|---|---|---|---|
| Regaal Resources Limited | 6.05 | 28.66 | 21.98 | 20.25 | 6.18 |
| Sanstar Limited | 2.58 | 34.18 | 36.46 | 7.03 | 2.76 |
| Gujarat Ambuja Exports Ltd | 5.44 | 65.46 | 20.22 | 8.30 | 1.69 |
| Gulshan Polyols Ltd | 3.95 | 87.07 | 44.56 | 4.02 | 2.02 |
| Sukhjit Starch & Chemicals Ltd | 12.79 | 173.82 | 13.51 | 7.36 | 0.99 |
While not the cheapest by valuation, Regaal Resources stands out with its profitability and return metrics, making it a noteworthy contender in the space.
Strengths and Risks of Regaal Resources IPO
| Strengths | Risks |
|---|---|
| Leading manufacturer of starch and derivatives in India | Highly dependent on agro-based raw materials like maize and corn |
| Wide range of value-added products with industrial applications | Volatile commodity prices can impact margins |
| Diversified customer base across food, pharma, textile, and paper industries | Faces competition from both domestic and global players |
| Strong return metrics – RoNW of 20.25% | Relatively high P/BV ratio at 6.18x may suggest premium valuation |
| Experienced promoter and management team | Regional concentration in sourcing and supply chain could pose risk |
| Steady revenue and profit growth over the years | Regulatory changes in agro-processing or environment norms may impact ops |
Regaal Resources IPO GMP Today
As of August 7, 2025, the grey market premium (GMP) for Regaal Resources IPO stands at ₹0, indicating no premium or discount over the issue price. This suggests neutral sentiment in the unofficial market ahead of the IPO listing.
Regaal Resources IPO GMP Trend
| GMP Date | IPO Price | GMP | Estimated Listing Price | Estimated Profit |
|---|---|---|---|---|
| 07-08-2025 | ₹102.00 | ₹0 (No change) | ₹102 (0.00%) | ₹0 |
Note: GMP is unofficial and speculative. It does not guarantee listing performance.
Conclusion
The Regaal Resources IPO presents a mix of strong fundamentals and fair industry positioning, but its muted GMP and premium valuations raise some eyebrows. For investors, the key is to align expectations with strategy — balancing near-term listing gains with long-term business potential. With its consistent financial performance and high RoNW, Regaal may appeal to both fundamental and tactical investors — but caution is advised due to commodity-linked risks and current market mood.
Short-Term Strategy
If your goal is listing gains, keep expectations moderate. With GMP at zero, early signs don’t point to a strong debut. Track subscription trends — especially QIB and NII — on Day 2 and Day 3 for better clarity.
Long-Term Strategy
Fundamentally, Regaal Resources operates in a defensible segment with steady demand and strong RoNW (20.25%). If you believe in India’s agro-based manufacturing story and can stomach raw material price volatility, this stock could reward patient investors over time.
Allotment Strategy
Apply through multiple demat accounts in the retail category to improve your allotment odds. Since the issue size is moderate and interest appears average so far, chances may be slightly better than typical mainboard IPOs.
If Regaal Resources can starch out the market wrinkles, it might just iron in some serious long-term alpha.
FAQs on Regaal Resources IPO
1. What is the Regaal Resources IPO issue size?
The total issue size is ₹22.45 crore, consisting entirely of a fresh issue.
2. What is the price band of the Regaal Resources IPO?
The IPO is priced in the band of ₹100 to ₹102 per equity share.
3. What are the IPO opening and closing dates?
The IPO opens on August 9, 2025, and closes on August 13, 2025.
4. What is the lot size for Regaal Resources IPO?
Retail investors can apply for a minimum of 1 lot = 144 shares,
which costs ₹14,688 at the upper price band.
5. What is the face value of each share?
Each equity share has a face value of ₹10.
6. When will the allotment be finalized?
The allotment is expected to be finalized on August 14, 2025.
7. What is the expected listing date?
The shares are expected to list on August 18, 2025, on NSE SME.
8. What is the GMP (Grey Market Premium) for Regaal Resources IPO today?
As of August 7, 2025, the GMP is ₹0, indicating neutral market sentiment.
9. What will the IPO proceeds be used for?
The funds will be used for working capital, general corporate purposes, and issue-related expenses.
10. Is Regaal Resources IPO suitable for long-term investors?
The company shows strong RoNW and decent financials, but the valuation is moderately high. Long-term investors should assess sector cyclicality and raw material risks.
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