Regaal Resources IPO Day 2: 9.07x Strong Fundamentals

by Priya Bhatiya

Posted on August 13, 2025

On Day 2 of the Regaal Resources IPO (August 13, 2025), the issue has been subscribed approximately 9.07 times so far. This shows a significant jump from Day 1, where the IPO was subscribed 5.94 times at the close of the day.

Quick highlights about Regaal Resources IPO so far:

• The IPO size is ₹306 crore, comprising a fresh issue of 2.06 crore shares (worth ₹210 crore) and an offer-for-sale of 94 lakh shares (₹96 crore).
• On Day 1, Non-Institutional Investors led with a subscription of about 10.77 times, Retail Investors at 5.59 times, and Qualified Institutional Buyers (QIBs) at 2.94 times.
• The IPO is a book-building issue with a price band of ₹96 to ₹102 per share and a lot size of 144 shares.
• It is a mainboard IPO with strong investor interest, especially among HNIs and retail investors.
• The IPO will close on August 14, with allotment on August 18 and listing scheduled for August 20.

This strong subscription of over 9 times on Day 2 indicates very good investor demand for Regaal Resources shares.

Here are some knowledgeable details about the Regaal Resources IPO:

• Regaal Resources is a manufacturer of maize-based specialty products, including native and modified starch, maize flour, icing sugar, custard powder, and baking powder. The company also produces co-products like maize germ and gluten.
• It operates a zero liquid discharge manufacturing facility in Kishanganj, Bihar, strategically located near maize farms and important markets like Nepal and Bangladesh, which optimizes raw material procurement and distribution efficiency.
• Financially, the company has shown strong growth: Profit After Tax increased from ₹16.76 crore in FY23 to ₹47.67 crore in FY25 (a 184.4% rise), and EBITDA rose 177.4% from ₹40.67 crore to ₹112.79 crore. Revenue grew at a CAGR of about 37% over FY23-25.
• Assets have expanded from ₹371.52 crore in FY23 to ₹860.27 crore in FY25. Net worth and reserves also more than doubled during this period, reflecting robust profit retention.
• The IPO size is ₹306 crore, consisting of a fresh issue of ₹210 crore and an offer-for-sale of ₹96 crore by promoters. Funds raised will largely be used to repay debt, which stands at ₹507 crore, helping to deleverage the balance sheet.
• Valuation metrics at the upper price band of ₹102 include a P/E ratio of about 22x based on FY25 earnings, and a return on net worth around 10.5%. The company aims to improve financial flexibility and invest in product diversification and geographic expansion.
• The company has a diverse customer base across food, paper, textiles, and animal feed industries and a widespread sales network in India along with exports to Bangladesh, Nepal, and Malaysia.
• Promoters include Anil Kishorepuria, Shruti Kishorepuria, Karan Kishorepuria, and BFL Private Limited, who bring experienced management to the business.
• IPO subscription so far shows strong investor interest, with broad demand across institutional, non-institutional, and retail segments.

In summary, Regaal Resources presents a compelling growth story with expanding revenue and margins, a strategic manufacturing location, an eco-friendly production process, and a strong financial track record, though investors should be mindful of its elevated debt and sector risks. The IPO proceeds will help reduce leverage and support growth initiatives in modified starch and new geographic markets, providing multiple avenues for future expansion. This makes it an attractive opportunity for investors focused on the maize-based specialty products sector.