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Regaal Resources IPO launched on 12th August 2025 and will close on 14 August 2025. Investors have only one day left to apply for the IPO. The price band is fixed between Rs. 96 and Rs. 102 per share, with the company hoping to raise Rs. 306 crore - Rs. 210 crore as fresh equity and Rs. 96 crore from an offer for sale (OFS) by promoters.
As of the Day 3 mark, the Grey Market Premium (GMP) for Regaal Resources IPO has risen to Rs. 31, an increase from Rs. 24 GMP at the beginning of the week. This is a 27% premium over the upper price band of Rs. 102, indicating strong demand and sentiment for the stock. The price increase of the Regaal Resources IPO GMP is due to strong subscription and strength in the market overall.
By noon on Day 3, the IPO has had an overall subscription of 26.93x. The retail portion was subscribed to 22.63x; the Non-Institutional Investors (NII) portion is subscribed to 68.4x; and the Qualified Institutional Buyers (QIBs) are subscribed to 3.36x their allocated portion.
The exceptional response from NII investors suggests strong demand for the IPO, especially from high-net-worth individuals (HNIs).
Regaal Resources is a prominent manufacturer of maize-based specialty products and is the second largest in eastern India. Regaal Resources has a daily maize milling capacity of 750 tonnes and operates a facility in Kishanganj, Bihar. It strategically allows for a lower raw material cost due to proximity to the quality maize farmers by 6 to 7%.
Financially, Regaal Resources achieved a 37% CAGR in revenue from FY23 to FY25, achieving net profits of Rs. 16.8 crore, increasing to Rs. 47.7 crore, and in EBITDA margins averaging 8.3% and moving to 12.3% over that same period.
Regaal plans to use the IPO proceeds primarily to reduce Rs. 159 crore of debt and the remaining proceeds for general corporate purposes such as capacity expansion. After the IPO, the promoter's stake will fall from 99.56% to 70.44%.
Brokerages are bullish on this IPO. Arihant Capital is advising a 'Subscribe for long-term' rating, citing growth potential, and Reliance Securities is also advising to subscribe based on its market position and efficiency.
Also Read: JSW Cement IPO Listing: 7.77x Subscription,₹151.5 Listing Price Expected
With the strong subscription numbers, positive GMP, and strong financial performance of the company, it appears the Regaal Resources IPO has appealed to investors with a long-term view. However, as with any IPO, before going any further, it is important for investors to assess their risk tolerance.
In conclusion, with positive broker ratings and demand, the Regaal Resources IPO offers a reasonable prospect for long-term investors.
