The stock listed at Rs 141.80 on the BSE, a 39% premium to its IPO price of Rs 102, and at Rs 141 on the NSE, up 38.2% from the issue price. But momentum quickly faded, with shares hitting an intraday low of Rs 131.9 on the BSE, down 7% from the open, and Rs 132 on the NSE, a 6.4% drop.
Still, the performance beat the grey-market premium of Rs 133 seen ahead of listing, which had implied a gain of about 30%.
Strong subscription
The Rs 306 crore IPO comprised a fresh issue of Rs 210 crore and an offer for sale of Rs 96 crore. It drew a robust subscription of more than 150 times, with qualified institutional buyers bidding 190.96 times, non-institutional investors 356.72 times, and retail investors 57.75 times. Ahead of the IPO, the company raised Rs 91.8 crore from anchor investors.
Brokerages bullish
Brokerages were positive going into the issue. Arihant Capital recommended “subscribe for long-term,” citing Regaal’s strategic location in a key maize belt, efficient procurement, and a diversified product mix.Reliance Securities had also advised subscribing, pointing to Regaal’s cost efficiencies, government incentives, and expansion plans to boost daily capacity to 1,650 tonnes. The brokerage also highlighted the company’s entry into high-margin starch derivatives and white-label products as a growth driver.Also read | Ola Electric shares rally 18% in 2 days. Analysts say Rs 57 within reach; should you buy?
Company profile
Founded in 2012, Regaal Resources manufactures maize starch, modified starch, and co-products such as gluten, germ, and fiber. Its 54-acre, zero-liquid-discharge plant in Kishanganj, Bihar, supplies industries spanning food, paper, animal feed, and adhesives, and also exports to Nepal and Bangladesh.
Financially, the company has been expanding rapidly: revenue surged 53% year-on-year to Rs 917.6 crore in FY25, while profit after tax more than doubled to Rs 47.7 crore.
Use of proceeds
Proceeds from the issue will be used primarily to repay or prepay Rs 159 crore of debt, with the balance earmarked for general corporate purposes. Post-IPO, promoter shareholding will decline from 99.56% to 70.44%.
Also read | Regaal Resources shares list at 39% premium over IPO price
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