Regaal Resources IPO shares to make market debut; will it deliver a strong listing pop?

Regaal Resources, a company specialising in agro products, is set to commence trading on the Dalal Street today, August 20. According to the grey market premium (GMP), the shares are expected to list at a 30-31% premium, reflecting robust investor interest following the IPO. The company had closed its IPO subscription between August 12 and 14 with shares priced between Rs 96 and Rs 102 per share.

The IPO of Regaal Resources was well-received, with the issue being subscribed a remarkable 159.88 times overall. Investors lodged over 35.65 lakh applications, seeking shares worth Rs 34,250 crore. The allocation for qualified institutional buyers was oversubscribed by 190.97 times, while non-institutional investors showed even greater enthusiasm, leading to a 356.73 times subscription. Retail investors subscribed their portion 57.75 times.

Regaal Resources' GMP has been resilient, recently recovering to Rs 30-32 per share, indicating investor optimism. This recovery comes amidst a broader market upturn, enhancing expectations of a strong market debut. Initially, during the IPO bidding period, the GMP stood at Rs 24-26, showing significant improvement since then.

Founded in 2012, Regaal Resources operates a maize specialty products manufacturing plant in Kishanganj, Bihar, with a capacity of 750 tonnes per day. The plant spans 54.03 acres and boasts zero liquid discharge. The company exports to Nepal and Bangladesh, serving various industries like food products, paper, and animal feed. Brokerage firms have been largely positive about Regaal Resources.

The funds raised through the IPO amount to Rs 306 crore, which includes a fresh share sale of Rs 210 crore and an offer-for-sale (OFS) of up to 94.12 lakh equity shares worth Rs 96 crore. Pantomath Capital Advisors, Sumedha Fiscal Services, and MUFG Intime India are managing and registering the IPO.