The initial public offering (IPO) of Regaal Resources continued to see a solid demand during the second day of the bidding process, thanks to HNI and retail interest.
The issue, which had opened on Tuesday, August 12, was overall booked nearly 6 times on day one.
Regaal Resources is selling its shares in the price band of Rs 96-102 apiece. Investors can apply for a minimum of 144 shares and its multiples thereafter. It is looking to raise Rs 306 crore via IPO, which includes a fresh share sale of Rs 210 and an offer-for-sale (OFS) of up to 94.12 lakh equity shares worth Rs 96 crore.
According to the data, the investors made bids for 45,22,66,272 equity shares, or 21.54 times, compared to the 2,09,99,664 equity shares offered for the subscription by 3.20 pm on Wednesday, August 13, 2025. The bidding for the issue shall conclude on Thursday, August 14.
The allocation for non-institutional investors (NIIs) was subscribed 52 times, while the portion reserved for retail investors saw a subscription of 18.95 times. Allocation for qualified institutional bidders (QIBs) was subscribed 3.22 times as of the same time.
Incorporated in 2012, Regal Resources manufactures maize specialty products in India, with a crushing capacity of 750 tonnes per day. The manufacturing unit is located in Kishanganj, Bihar, spanning 54.03 acres with zero liquid discharge. It exports its products to Nepal and Bangladesh. It caters to diverse industries including food products, paper, animal feed, and adhesives.
The grey market premium (GMP) of Regaal Resources has been able to hold its ground on the back of strong bidding. Last heard, the company was commanding a premium of Rs 30-32 in the unofficial market, suggesting a listing pop of 29-31 per cent for the investors. The GMP stood around the same levels.
Analysts mostly have a positive view on this issue. They are positive on the issue citing its strong market share, solid financials, strategic locations, sales network, reasonable valuations and expansion growth. However, the cyclical nature of business and negative cash flows are the major concerns for the issue.
“We assign a ‘subscribe with caution’ rating to this IPO as the company has demonstrated healthy growth in recent years and has a diversified portfolio of products catering to a wide range of industries, positioning it well to capitalise on favorable industry trends,” said Marwadi Financial Services. The presence of negative cash flows in recent fiscals makes us cautious from a long-term perspective, it said,
Regaal Resources raised Rs 92 crore from anchor investors as it allotted 89,99,856 equity shares at Rs 102 apiece. Regaal Resources has reserved 50 per cent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of the allocations. Retail investors will have the remaining 35 per cent of the issue.
The issue has been priced at P/BV of 2.3 times and P/E of 22 times compared to industry average P/BV of 1.7 times and average P/E of 28.2 times, Regaal Resources is reasonably valued, said Eureka Stock Broking. “Investors may ‘subscribe’ to this IPO considering strategic location, diversified product portfolio, integrated & scalable infrastructure, marquee customer base, deleveraging the balance sheet post issue and strong financial track record,” it said.
Regal Resource reported a net profit of Rs 47.67 crore with a revenue of Rs 917.58 crore with a financial year ended on March 31, 2025. The company clocked a net profit of Rs 22.14 crore with a revenue of Rs 601.08 crore for the year 2023-24. The company shall command a total market capitalization of Rs 1,048 crore at the upper end of the price band.
The IPO will enable the company to strengthen its financial position by channeling Rs 159 crore towards the repayment of outstanding borrowings, which will reduce interest costs and improve leverage ratios, thereby enhancing profitability and operational flexibility, said Adroit Financial Services.””It is recommended to “Subscribe” to the IPO for long-term investment.”
Pantomath Capital Advisors and Sumedha Fiscal Services are the book running lead managers for Regaal Resources IPO and MUFG Intime India is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE with Wednesday, August 20 as the tentative date of listing.