Regaal Resources IPO Day 1: Issue subscribed 2.56 times within 3 hours; details here

The initial public offering (IPO) of Regaal Resources Ltd opened for subscription on Tuesday, August 12. The company is offering its shares in the price band of Rs 96-102 apiece, with a minimum application size of 144 equity shares and in multiples thereafter. The bidding will close on Thursday, August 14.

As of 1:03 pm, the IPO had received 5,37,41,520 bids against 2,09,99,664 shares on offer, translating to an overall subscription of 2.56 times. The non-institutional investor (NII) portion was subscribed 4.15 times, the retail category 2.91 times, while the qualified institutional buyer (QIB) segment saw 75 per cent subscription.

The company aims to raise Rs 306 crore through the IPO, comprising a fresh issue worth Rs 210 crore and an offer-for-sale (OFS) of up to 94,12,000 equity shares valued at Rs 96 crore. The net proceeds will be utilised for debt repayment and general corporate purposes.

Established in 2012, Regaal Resources manufactures maize specialty products in India, with a crushing capacity of 750 tonnes per day. Its manufacturing facility, spread across 54.03 acres in Kishanganj, Bihar, operates with zero liquid discharge. The company exports to Nepal and Bangladesh, serving industries such as food products, paper, animal feed and adhesives.

Ahead of the IPO, Regaal Resources raised Rs 92 crore from anchor investors by allotting 89,99,856 shares at Rs 102 apiece. Key anchor investors include Taurus Mutual Fund, Meru Investment Fund, Authum Investment and Infrastructure, Universal Sompo General Insurance, Zeta Global Funds (OEIC) PCC, along with several domestic alternative investment funds (AIFs).

Of the net offer, 50 per cent is reserved for QIBs, 15 per cent for NIIs and 35 per cent for retail investors. In the grey market, the stock was last seen commanding a premium of Rs 23 per share, indicating potential listing gains of around 22.55 per cent for investors.

For the financial year ended March 31, 2025, Regaal Resources reported a net profit of Rs 47.67 crore on revenue of Rs 917.58 crore. In FY24, it posted a net profit of Rs 22.14 crore on revenue of Rs 601.08 crore. At the upper end of the price band, the company's market capitalisation (m-cap) will stand at Rs 1,048 crore.

Pantomath Capital Advisors and Sumedha Fiscal Services are the book running lead managers, while MUFG Intime India is the registrar to the issue. The company's shares are proposed to be listed on both BSE and NSE, with a tentative listing date of August 20.