Regaal Resources has floated it IPO, and the numbers of the agro-stock tell us the reason of the GMP being between Rs 19-26 for Rs 102 max per share.
Regaal Resources Limited, an Indian agro-processing firm dealing in maize-based value-added products, has floated its Initial Public Offering (IPO) in August 2025 to raise ₹306 crore. The IPO for subscription began on August 12, 2025, and ends on August 14, 2025, with shares slated to list on BSE and NSE on or before August 20, 2025.
The issue has a new issuance of about 2.06 crore equity shares for ₹210 crore and an offer for sale for about 0.94 crore shares at ₹96 crore. Priced between ₹96 and ₹102 per share, investors are required to apply for at least a minimum lot of 144 shares, with a minimum retail investment of around ₹14,688. Institutional buyers and high-net-worth individuals have larger minimum application lot sizes. The GMP floats between Rs 26 to Rs 19.
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Regaal Resources has a strategically situated, zero liquid discharge manufacturing plant in Kishanganj, Bihar, a prime maize producing region, providing the company with a commanding cost and supply edge. It produces native and modified starches and other value-added maize products like maize flour, custard powder, icing sugar, and baking powder. Its products find application in various industries like paper, food processing, animal feed, textiles, and adhesives. It also exports to regional countries like Bangladesh, Nepal, and Malaysia.
Financially, Regaal Resources has shown strong growth. In the financial year ending March 31, 2025, it reported revenues of approximately ₹917 crore and net profits of ₹47.67 crore, which is sharply higher from ₹601 crore revenue and ₹22 crore profit in the last year. Its top line has expanded at a compound annual growth rate (CAGR) of 37% between FY23 and FY25, as profit after tax has also increased at a robust rate. The EBITDA margins of the company have enhanced from 8% to 12% over the same time frame.
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The IPO proceeds are mostly to bring down the debt of the company, which was at a debt-to-equity ratio of 2.08 as of FY25, from a higher one in the previous year. The remaining proceeds will go into general corporate purposes and capacity enhancement plans aimed at ramping up crushing capacity to 1,650 tonnes per day. This increase in capacity and product diversification into higher-margin starch derivatives and white-labelling are anticipated to drive future profitability.
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Brokerage houses have rated the IPO favorably, based on Regaal Resources' strategic position, Zero Liquid Discharge plant that is sustainable, diversified product line, leading market position, and sound financial history. The emphasis of the company on research and development and an R&D team dedicated to it also enhances its research and development efforts, as well as competitiveness in the maize starch market.
With a good growth prospect, a sound customer base in various industries, and an aggressive deleveraging and expansion strategy, Regaal Resources' IPO offers a chance for long-term investors to invest in India's growing agro-processing business and specialty products market of maize.
