IPO Details
- IPO Opening Date: August 12, 2025
- IPO Closing Date: August 14, 2025
- IPO Size: Rs. 306 crore
- Fresh Issue: Rs. 210 crore
- Offer for Sale (OFS): Rs. 96 crore (at upper price band)
- IPO Price Band: Rs. 96-102 per share
- Minimum Bid Lot Size: 144 shares for retail investors
- Allocation to Investors: Not more than 50% for Qualified Institutional Buyers (QIBs), not less than 15% for Non-Institutional Bidders, and not less than 35% for Retail Individual Bidders
- Book Running Lead Managers: Pantomath Capital Advisors Private Limited and Sumedha Fiscal Services Limited
- Registrar to the Offer: MUFG Intime India Private Limited (formerly Link Intime India Private Limited)
About the Company
- History: Regaal Resources Limited was incorporated on January 2, 2012, as a private limited company and converted to a public limited company on March 30, 2022. Commercial production began in September 2018.
- Main products/services: The company is one of India’s largest manufacturers of maize-based specialty products, including native and modified maize starch, co-products like gluten, germ, enriched fiber, and fiber. It also produces value-added food-grade starches such as maize flour, icing sugar, custard powder, and baking powder. Regaal Resources operates on a B2B model, supplying to industries like paper, food, adhesives, gums, industrial molding, foundry, and color manufacturing.
- Sales & manufacturing units: The company’s zero liquid discharge (ZLD) maize milling facility, spanning 54.03 acres, is located in Kishanganj, Bihar. This is the first maize milling enterprise in the Kishanganj district, a significant maize cultivation hub in India. It is the only maize milling plant in Bihar.
- Employees: As of March 31, 2025, the company had 469 employees.
- Promoters: Anil Kishorepuria, Shruti Kishorepuria, Karan Kishorepuria, and BFL Private Limited.
- Branches/Network: The company is headquartered in Kolkata. Its strategic location in Kishanganj, Bihar, provides access to major maize cultivation areas and proximity to domestic markets in East and North India, as well as export destinations like Nepal (24 km away) and Bangladesh (235 km away). It also has warehouses in Bihar and West Bengal.
Financials
(Figures in Rs. Crore)
| Particulars | FY2025 | FY2024 | FY2023 |
|---|---|---|---|
| Revenue from Operations | 915.16 | 600.02 | 487.96 |
| EBITDA | 112.79 | 56.37 | 40.67 |
| EBITDA Margin (%) | 12.32 | 9.39 | 8.34 |
| Net Profit (PAT) | 47.67 | 22.14 | 16.76 |
| Net Profit Margin (%) | 5.19 | 3.68 | 3.43 |
Post IPO Market capitalization: Rs. 1,048 crore. Market capitalization / Sales (FY25): 1.14x . P/E FY24: 35.29x ; P/E FY25: 22x (at upper price band)
Observation on results: The company has shown strong financial growth from FY2023 to FY2025, with significant increases in revenue, EBITDA, and net profit. Its EBITDA and Net Profit margins have also consistently improved over these three fiscal years.
Salient points
- Use of funds: The company proposes to utilize Rs. 159 crore from the net proceeds for repayment and/or pre-payment of outstanding borrowings. The remaining balance will be used for general corporate purposes. This debt reduction is expected to lower interest costs, potentially saving Rs. 8-10 crore annually.
- Business operations: The company operates a zero liquid discharge (ZLD) facility, reprocessing all water effluent for reuse. It generates approximately 90% of its energy needs through a 7.1 MW captive power plant, which uses high-pressure steam that is also required for the production process, resulting in near-free power.
- Procurement & Seasonality: Maize is sourced directly from cultivators, aggregators, and traders in Bihar and West Bengal. To manage seasonality of this agricultural product, the company procures its entire 12-month raw material requirement during the Rabi season (April to July), providing price certainty for its end products.
- Revenue Model: Regaal Resources functions as a B2B supplier, serving a diverse range of industries including paper, food, adhesives, gums, and various industrial applications like molding, foundry, and color manufacturing. Its customer base grew from 182 in FY23 to 261 in FY25. Top 10 customers accounted for 45.46% of revenue in FY25.
- Business Strategy & Expansion: The company plans to increase its crushing capacity from 750 TPD to 1650 TPD to capitalize on growth in its end-user industries. It also aims to expand its domestic market reach, particularly in South India.
- Working Capital: The cash conversion cycle for the company was 93 days in FY2025, an increase from 79 days in FY2024 and 43 days in FY2023.
- Financial Growth: Regaal Resources reported a revenue from operations CAGR of 36.95% from FY2023 to FY2025. Profit After Tax (PAT) showed an impressive CAGR of 68.66% over the same period, while operating profit margins (OPM) improved from 8.3% in FY22 to 12.3% in FY25.
- Risks: The company faces promoter-related litigations, including one against Anil Kishorepuria for alleged IPC and Prevention of Corruption Act violations, with the next hearing scheduled for August 11, 2025. Anil Kishorepuria and certain promoter group members were also previously barred from capital market activities by SEBI, though the penalty period has been served.
Anchor book
Regaal Resources raised approximately ₹92 crore from anchor investors, with allotments to 10 anchor investors through its anchor round. The top 10 anchor investors were Taurus Mutual Fund, Benami Capital, VPK Global Ventures Fund, Meru Investment Fund PCC-Cell 1, Holani Venture Capital Fund, Sunrise Investment Opportunities Fund, Authum Investment and Infrastructure Fund, Universal Sompo General Insurance, Zeta Global Funds (OEIC) PCC, and a leading domestic AIF; each received roughly 8–14% of the anchor book, with Taurus Mutual Fund reportedly being the largest recipient (about 14%) and others in the top 10 holding 8–11% each of the allocation.
Total allocation to mutual funds from the anchor book is estimated at around 33%.
Peers
(Figures in Rs. Crore)
| Company | Revenue | NAV (₹ per share) | RoE (%) | P/E | P/B |
|---|---|---|---|---|---|
| Regaal Resources Limited | 918 | 28.66 | 20.25 | 21.98 | 4 |
| Sanstar Limited | 971 | 34.18 | 7.03 | 34 | 3 |
| Gujarat Ambuja Exports Ltd. | 4,695 | 65.46 | 8.30 | 19 | 2 |
| Gulshan Polyols Limited | 2,025 | 87.07 | 4.02 | 44 | 2 |
| Sukhjit Starch and Chemicals Limited | 1,506 | 173.82 | 7.36 | 13 | 1 |
Management commentary
Anil Kishorepuria, the Chairman and Managing Director, highlights the company’s unique maize procurement policy, where they procure a full 12 months’ supply during the four-month Rabi season (April to July) in Bihar. This strategy is a “very very big add-on to our bottom line” as it provides certainty on the end-product price for up to nine months in advance, helping deal with seasonality.
He emphasizes the versatility of maize, noting that its carbohydrate component (starch) has “1,000 applications” in daily human life, while protein is primarily for animal consumption, and fiber and oil are for human consumption.
Regarding sustainability, Anil Kishorepuria states that Regaal Resources was one of the first units to implement a zero liquid discharge (ZLD) policy after the Bihar government made it mandatory in late 2017. This means all effluent water is reprocessed and returned to the plant, offering an environmental advantage. Additionally, their captive power plant, expanded from 1.3 MW to 7.1 MW, generates approximately 90% of their power needs for free by utilizing high-pressure steam, which is also essential for the production process.
Opinion
I may apply to the IPO.
Post IPO equity capital: Rs. 51.36 crore P/E for FY25: 22 times
Investment Rationale:
- Regaal Resources has demonstrated strong financial performance with impressive revenue and PAT CAGRs over the last three fiscal years, alongside improving margins.
- Its strategic location in Bihar, a major maize-producing region, provides significant procurement advantages and market proximity.
- The planned doubling of crushing capacity is a key positive, aiming to capitalize on anticipated growth in end-user industries.
- The debt reduction from IPO proceeds is expected to lower interest costs and boost profitability.
- This post is exploratory and educational purposes only.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.