Regaal Resources IPO Day 2: A Comprehensive Overview
The Initial Public Offering (IPO) of Regaal Resources Limited has made its debut in the Indian primary market, opening on August 12, 2025, and set to close on August 14, 2025. With a price band ranging from ₹96 to ₹102 per equity share, the company aims to raise a total of ₹306 crore. This amount includes ₹210 crore from the issuance of fresh shares, while the remaining ₹96 crore is designated for the offer for sale (OFS) route.
Grey Market Performance
As the IPO progresses, Regaal Resources shares are witnessing a robust premium in the grey market. Market observers report that shares are currently trading at a premium of ₹24, which is an increase of ₹2 from the previous day’s grey market premium (GMP) of ₹22. This uptick indicates a positive sentiment among investors, suggesting strong demand for the shares.
Subscription Status
By 5 PM on Day 2 of the bidding process, the public issue has garnered significant interest, with an overall subscription rate of 26.40 times. Breaking it down further, the retail portion has been subscribed 21.85 times, the Non-Institutional Investors (NII) segment 67.76 times, and the Qualified Institutional Buyers (QIB) segment 3.36 times. This overwhelming response highlights the market’s confidence in Regaal Resources.
Key IPO Details
- GMP: As mentioned, the current grey market premium stands at ₹24.
- Price Band: The IPO price band is set between ₹96 and ₹102 per equity share.
- IPO Dates: The bidding process is open from August 12 to August 14, 2025.
- IPO Size: The total amount to be raised is ₹306 crore, with ₹210 crore from fresh shares and ₹96 crore from the OFS route.
- Lot Size: Investors can apply in lots, with one lot comprising 144 shares.
- Allotment Date: The expected date for share allocation is August 18, 2025.
- Registrar: MUFG Intime India Private Limited has been appointed as the official registrar for the IPO.
- Lead Managers: Pantomath Capital Advisors and Sumedha Fiscal Services are the lead managers overseeing the IPO.
- Listing Date: The anticipated listing date for shares is August 20, 2025, following a stock market holiday on August 15.
Investment Outlook: Good or Bad for Investors?
Analysts have weighed in on the potential of the Regaal Resources IPO, with many assigning a ‘subscribe’ rating. Anshul Jain, Head of Research at Lakshmishree Investment, highlights the company’s strategic positioning in the maize belt of Bihar and West Bengal. This location provides year-round access to raw materials at a cost that is 6–7% lower through direct procurement from farmers. Such cost advantages translate into superior margins compared to competitors.
Regaal Resources is projected to experience a strong revenue compound annual growth rate (CAGR) of 37% from FY23 to FY25. The company plans to double its capacity from 750 tons per day (TPD) to 1,650 TPD and diversify its product offerings into high-margin modified starches, maltodextrin, and liquid glucose. Additionally, the IPO proceeds will help reduce high-cost debt, further enhancing profitability.
However, risks remain, including a high leverage ratio (Debt-Equity ~2.1x) and dependence on maize, which is susceptible to commodity price fluctuations and weather conditions. Despite these risks, the company’s location advantage, expansion plans, and a margin-accretive product mix make it an attractive long-term investment.
Anand Rathi also supports a ‘subscribe’ rating, noting that the company is seeking a price-to-earnings (P/E) ratio of 21.9 times based on annualized FY25 earnings. While the issue appears fully priced, the capital-intensive nature of operations and exposure to agricultural cycles are factors to consider. Nonetheless, the company’s strategic location and diversified customer base bolster its long-term scalability.
Other brokerage firms, including Arihant Capital Markets, BNK Securities, BP Equities, Canara Bank Securities, Reliance Securities, SMIF, Swastika Investmart, and Venture Securities, have similarly assigned a ‘subscribe’ rating to the Regaal Resources IPO.
Conclusion
As the Regaal Resources IPO continues to unfold, the strong subscription rates and positive grey market performance indicate a favorable outlook for investors. However, potential investors are advised to conduct thorough research and consult with certified experts before making any investment decisions. The IPO presents an intriguing opportunity, particularly for those looking to invest in a company with promising growth prospects in the agribusiness sector.