Regaal Resources IPO Day 3: Issue subscribed nearly 81 times so far on final day

The initial public offering (IPO) of Regaal Resources Ltd, which opened on August 12, drew strong investor interest, receiving bids worth nearly 81 times the shares on offer by the final day of subscription so far.

As of 1:27 pm on Day 3 (Thursday), the issue had received 1,69,36,72,704 bids against 2,09,99,664 shares available, reflecting an overall subscription of 80.65 times. Investor interest was particularly strong among non-institutional investors (NIIs), whose quota was oversubscribed 249.22 times. The retail investor category subscribed 43.76 times, while the qualified institutional buyer (QIB) segment saw 18.79 times subscription.

The company has set the IPO price band at Rs 96–Rs 102 per share, with a minimum application size of 144 equity shares and multiples thereafter.

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, the company 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 32 per share, indicating potential listing gains of around 31 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.