IPO closes on 14 Aug'25
Regaal Resources Ltd
Minimum Investment
₹ 14,688 / 144 shares
Grey market premium
₹ 23 (23% premium)
Our Verdict:
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- Regaal Resources Ltd (RRL) has shown strong revenue and earnings growth over the last three years, supported by solid return metrics. Although the company’s debt levels are elevated, the proceeds from the IPO will help reduce borrowings, thereby strengthening its balance sheet.
- With an impressive 99.74% capacity utilization and a manufacturing scale-up from 750 TPD to 1,650 TPD in progress, RRL is well-positioned to capture growing market opportunities.
- In terms of valuation also, the IPO appears reasonably priced at a P/E of 17 based on FY25 earnings. Additionally, the grey market premium (GMP) indicates a positive listing on the stock exchanges.
- Given the company's robust growth trajectory, expanding market presence, and reasonable valuations, investors may consider subscribing to the IPO with a medium-to-long-term perspective.
About the company
Founded in
2 Jan'12
Managing director
Anil Kishorepuria
- Headquartered in Kolkata, RRL is one of India's largest manufacturers of maize-based specialty products, with a total installed crushing capacity of 750 TPD. It operates a state-of-the-art zero liquid discharge (ZLD) maize milling plant in Kishanganj, Bihar, covering an area of 54.03 acres.
- RRL produces native maize starch, modified starch, co-products such as gluten, germ, enriched fibre, and fibre, as well as value-added products including food-grade starches like maize flour, icing sugar, custard powder and baking powder.
STRENGTHS
- Strong Financial Performance: RRL achieved impressive growth from FY23 to FY25, with a robust CAGR of 37% in operating revenue, 67% in EBITDA and 69% in net profit.
- Solid Return Metrics: RRL excels in operational efficiency, with a Return on Equity (RoE) of 20.25% and a Return on Capital Employed (RoCE) of 14.17% in FY25, significantly outperforming industry peers.
- Expanding Profit Margins: Profit margins have consistently strengthened, with the EBITDA margin reaching 12.32% and the net profit margin improving to 5.19% by FY25.
- Strategic Location: RRL is strategically located in the heart of one of India’s largest maize-growing hubs in Kishanganj district, Bihar, one of the top three maize-cultivating states in India. Additionally, it operates as the only maize milling plant in Bihar, benefiting from reduced logistics costs due to its proximity to Gulabbagh ‘mandi,’ one of India’s largest maize markets.
RISK FACTORS
- Client Concentration: In FY25, 45.46% of RRL’s consolidated revenue was derived from the top 10 customers. Any reduction in orders from these clients could materially affect operations and financial performance.
- Vendor Dependence: Over 83% of maize purchases come from the top 10 vendors, with no long-term contracts in place. The loss of these suppliers or a significant increase in maize prices could adversely impact business and revenue.
- Cash Flow Concerns: RRL recorded negative cash flows from operations in both FY25 and FY24. Persistent negative cash flows could strain liquidity, impacting business continuity and overall financial stability.
- Promoter Group Regulatory History: One promoter, Anil Kishorepuria, along with certain members of the Promoter Group, has previously been restrained from participating in capital market-related activities due to involvement in market manipulation.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 306 crore
Fresh Issue
₹ 210 crore
OFS
₹ 96 crore
Price range
₹ 96 - 102
Lot size
144 shares
Issue Objective
The net proceeds from the fresh issue will be utilized for:
- Prepayment or repayment of certain outstanding borrowings availed by the company; and
- General corporate purposes
Dates
Bidding open
12 Aug'25
Bidding close
14 Aug'25
Allotment date
18 Aug'25
Refund date
19 Aug'25
Listing
20 Aug'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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