Regaal Resources IPO 7.2x subscribed on Day 2 so far; GMP at 25%. Should you bid or skip?

Regaal Resources’ Rs 306 crore initial public offering (IPO) has been subscribed 7.17 times so far on Day 2, reflecting robust investor demand. In the grey market, the IPO is trading at a 25% premium over the issue price of Rs 102 per share, underscoring strong market appetite.

The book-built issue comprises a fresh issue of shares worth Rs 210 crore to fund business needs and an offer for sale (OFS) worth Rs 96 crore by the promoter group, enabling partial stake dilution. The IPO subscription window closes on August 14.

Regaal Resources IPO GMP

In the grey market, Regaal Resources’ IPO is trading at a Rs 25–27 premium, implying a ~25% gain over the upper price band of Rs 102, signalling strong demand and positive sentiment.

Regaal Resources IPO Day 2 Subscription Status

As of 10:05 AM, the Regaal Resources IPO was subscribed 7.17 times. Retail investors bid for 6.68 times the 1.04 crore shares reserved for them, indicating relatively lower participation versus other categories. NIIs subscribed 13.92 times their 44.99 lakh shares, while QIBs applied for 2.95 times the 59.99 lakh shares allotted.

Regaal Resources IPO: Price band and company overview

Regaal Resources has set its IPO price band at Rs 96-102 per share, with a minimum lot size of 144 shares. At the upper end, the market cap is estimated at Rs 9,985 crore. The shares are expected to list on both NSE and BSE on August 20.

One of India’s fastest-growing maize-based specialty product makers, Regaal ranks as the second-largest player in eastern India with a daily maize milling capacity of 750 tonnes. Its 54-acre Kishanganj, Bihar facility follows a zero liquid discharge process and offers 70,000 MT of storage. Located near Gulabbagh, a key maize trading hub, it sources directly from farmers, reducing raw material costs by 6-7%.

The portfolio spans native and modified maize starches, co-products like maize gluten and enriched fibre, and value-added products such as maize flour, icing sugar, custard powder, and baking powder. Regaal caters to industries including paper, animal feed, and food processing, with the paper sector contributing the largest share of revenue.

Financial Performance

In FY25, domestic sales contributed 93% of revenue, with exports to Bangladesh, Malaysia, and Nepal. Between FY23 and FY25, revenue grew at a 37% CAGR, net profit rose from Rs 16.8 crore to Rs 48 crore, and EBITDA margins improved from 8% to 12%.

Use of IPO Proceeds

IPO proceeds will mainly go toward repaying/prepaying Rs 159 crore debt, with the balance for general corporate purposes. Post-issue, promoter shareholding will drop from 99.56% to 70.44%.

Should you subscribe?

Brokerages are upbeat on the IPO. Arihant Capital recommends “Subscribe for long term,” citing the company’s strategic location in a key maize belt, efficient multi-source procurement, and a diversified product portfolio. Reliance Securities also advises subscribing, highlighting its strong market position, cost advantages from government incentives, planned capacity expansion to 1,650 TPD, and entry into high-margin starch derivatives and white-labelling.

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