The Regaal Resources IPO is generating considerable interest as it prepares to open for public subscription from August 12 to August 14, 2025. If you’re considering an investment in this promising agro-processing player, here’s a simple, comprehensive guide covering the IPO dates, price band, industry background, company strengths, financial highlights, risks, and the all-important “Should you apply?” verdict.
Key Regaal Resources IPO Details
- IPO Open: August 12, 2025
- IPO Close: August 14, 2025
- Price Band: ₹96 – ₹102 per share
- Face Value: ₹5 per equity share
- Lot Size: 144 shares (Minimum investment: ₹14,688 at upper price band)
- Issue Size: ₹306 crore
- Fresh Issue: ₹210 crore
- Offer for Sale (OFS): ₹96 crore
- Allotment Date: August 18, 2025
- Refunds/Unblocking: August 19, 2025
- Shares Credited to Demat: August 19, 2025
- Listing Date: August 20, 2025 (NSE & BSE)
- Lead Managers: Pantomath Capital Advisors, Sumedha Fiscal Services
- Registrar: Link Intime India Pvt Ltd
About Regaal Resources Ltd.
Founded in 2012 and based in Kolkata, Regaal Resources has emerged as one of India’s leading manufacturers of maize-based specialty products, including native and modified starch, maize flour, gluten, fiber, and food-grade derivatives. With an installed crushing capacity of 750 tonnes per day at its Bihar facility, the company serves the food, paper, animal feed, adhesives, and industrial segments across India, Nepal, and Bangladesh.
Business Model
- B2B Focus: Primarily operates on a business-to-business model, supplying maize-based ingredients to manufacturers and distributors.
- Diversified Industries: Clientele spans the food, beverage, textile, chemical, paper, and feed industries.
- Export Presence: Significant exports to neighboring markets, supplementing domestic demand.
Financial Performance Highlights
- FY2025 Revenue: ₹917.58 crore (up 53% from ₹601.08 crore in FY24)
- FY2025 Profit After Tax (PAT): ₹47.67 crore (up 115% from ₹22.14 crore in FY24)
- EBITDA (FY25): ₹112.79 crore (doubled over previous year)
- Net Worth: ₹235.41 crore
- Borrowings: ₹507.05 crore
This rapid growth in both revenue and profit underscores the surge in demand for processed agro-products and the company’s successful operational expansion.
Utilization of IPO Proceeds
- Debt Repayment: ₹159 crore allocated for repaying borrowings, boosting financial stability
- General Corporate Purposes: Balance for business needs and growth initiatives
Strengths of Regaal Resources
- Strategic Manufacturing Location: Close to both raw material sources (maize-growing regions) and end-user markets
- Efficient Procurement: Multiple sourcing channels for maize, aiming at cost control and steady supply
- High Utilization Rates: Modern, sustainability-driven facilities running at optimum capacity
- Wide Product Portfolio: Caters to broad, growing industry segments
- Sales & Distribution Network: Widespread reach across India and key export markets
- Strong Financials: Robust revenue and profit growth over the past years
Key Risks & Challenges
- Customer Concentration: Significant revenue depends on top 10 customers; loss or reduced order from them could impact sales
- Vendor Risks: Over 83% of maize is sourced from top 10 suppliers—no long-term supply contracts, exposing the business to procurement and price fluctuations
- Seasonal Raw Material: Maize is seasonal, affecting cost and availability
- Indebtedness: High debt levels may limit flexibility, though repayment plans are in place
- Contractual Weakness: Customer relationships aren’t locked in via long-term contracts—vulnerability to market shifts
Should You Apply for the Regaal Resources IPO?
The Regaal Resources IPO presents an opportunity for investors seeking a slice of India’s growing agro-processing sector. The company’s proven growth, diversified client roster, and debt reduction plan are positives. However, investors should weigh in the procurement, concentration, and market risks before investing.
This IPO may attract medium to long-term investors who are comfortable with sector volatility and want exposure to India’s industrial and agricultural supply chains.
How to Apply
- Apply through your bank’s net banking (ASBA) or via UPI-enabled broker/trading app.
- Select the desired number of lots (multiples of 144 shares) within the price band and complete the application before the closing date (August 14, 2025).
- Allotment status can be checked on the Link Intime website after August 18.