Regaal Resources IPO Subscribed Over 30x: GMP, Strengths, Risks, and What Investors Should Know

Regaal Resources, a leading player in India’s maize-based specialty products, saw investor demand skyrocket with its IPO oversubscribed 31.27 times on day 2. Non-Institutional Buyers showed exceptional enthusiasm, while retail investors and QIBs also came in strong. As of 10 AM, August 14, 2025, the GMP climbed from ₹32 on day 1 to ₹34 by the close of day 3, signaling positive market sentiment. With an IPO size of ₹306 crore priced between ₹96 and ₹102 per share, this surge highlights growing investor interest. This article will break down the company’s business prospects, IPO details, financial health, strengths, and risks to help investors assess the potential and challenges in this offering.

IPO Overview

• IPO Date: August 12 to August 14, 2025
• Total Issue Size: ₹306 crore
• Price Band: ₹96 to ₹102 per share
• Lot Size: 144 shares per lot
• Tentative Allotment Date: August 18, 2025
• Listing Date: August 20, 2025 (Tentative)
• Subscription Status: 31.27 times as of 10 AM, August 14, 2025.
• GMP: The GMP for Regaal Resources IPO is ₹32, according to Chittorgarh.com (as of August 14, 10 AM).
  Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

Highlight of Day 2 of the IPO

On day 2, Regaal Resources IPO saw demand soar further, closing the day with an overall subscription of 26.41 times. The Non-Institutional Buyers (NII) segment led aggressively with a massive 67.77 times subscription, followed by retail investors at 21.86 times, and Qualified Institutional Buyers (QIBs) at 3.36 times. Market sentiment stayed strong, with the GMP climbing from ₹32 on Day 1 to ₹36 on August 14, 2025. Based on current GMP trends, the estimated listing price now stands around ₹138, implying an expected listing gain of approximately 35.3% over the issue price.

Highlight of Day 1 of the IPO

On day 1, Regaal Resources IPO was subscribed 594% with retailers leading with 558% of their quota, QIBs with 294%, and a massive 1,077% by Non-Institutional Buyers. The GMP is also surged to ₹32 on August 13, 2025, compared to ₹23, a day before opening the IPO. The current GMP suggests an estimated listing price of ₹134, with a listing gain of 31.37%.

How does Regaal Resources Make Money?

Regaal Resources operates as a maize (corn) transformation factory. It buys raw maize and turns it into useful ingredients like maize starch, modified starch, gluten, germ, and fibre, the stuff that goes into foods, animal feed, paper, bakery products, and even industrial uses. It also makes ready-to-use products such as maize flour, icing sugar, custard powder, and baking powder.

It's plant in Kishanganj, Bihar, the only one in the state, crushes 750 tonnes of maize a day, serves 261 customers in India and abroad, and stores over 65,000 tonnes at once in silos and warehouses.

Objectives of the IPO

• ₹159 crore to repay loans (saving an estimated ₹12–17 crore per year in interest).
• Up to 25% of fresh issue proceeds for general corporate purposes.
• ₹96 crore from OFS goes to selling shareholders; none of this enters the company.

Strengths:

• Industry leader in margins: EBITDA margin of 12.32% in FY25 - highest among peers.
• Fast growth: Revenue grew at 36.9% CAGR in the last two years; profit up 68.7% annually.
• High efficiency: 99.74% capacity utilisation.
• Strategic location: Only maize mill in Bihar, near farms and export routes to Nepal/Bangladesh.
• Diverse products: 14 maize-based products serving multiple industries.

Risks:

• Customer concentration: Top 10 customers form 45% of revenue.
• Raw material dependency: 94% of maize sourced from top 10 vendors without long-term contracts.
• High debt: Debt-to-equity at 2.08x, with ₹561 crore borrowings.
• Single plant risk: Any disruption halts the business.
• Negative cash flows: Lost cash from operations in FY25 and FY24.
• Slow cash cycle: Takes ~93 days to turn raw maize into cash from customers.

For detailed information, visit Regaal Resources’ IPO page.

Peer Comparison

Regaal Resources competes with the likes of Sanstar, Gujarat Ambuja Exports, Gulshan Polyols, and Sukhjit Starch and Chemicals.

• RoE: 20.25% vs peers like Sanstar (7.03%) and Gujarat Ambuja Exports (8.3%).
• Margins: Highest EBITDA in the segment (12.32% vs Gujarat Ambuja at 8.69%).
• Debt: Much higher leverage than peers like Gulshan Polyols (0.64x).

Source: RHP

IPO Valuation

Regaal Resources is being offered at a P/E ratio of 16.9 (using the highest IPO price of ₹102 per share). In simple words, this means investors are willing to pay ₹16.9 for every ₹1 of profit the company makes. Compared to sector peers whose P/E ratios range from about 13.5 to 44.5, Regaal’s valuation sits around the middle, lower than the most expensive peer but higher than those trading at bargain multiples. This signals investors expect decent growth and profitability but aren’t betting on hyper-growth or paying excessive premiums.

Disclaimer: The P/E ratio here is calculated using the company’s post-IPO equity and its most recent FY25 net profits at the upper end of the price band.

The People Behind Regaal Resources

At the center is Anil Kishorepuria, a commerce graduate from St. Xavier’s Kolkata, widely recognized in eastern India business circles. Beyond running Regaal Resources, he’s a seasoned entrepreneur with roots in manufacturing, retail, and real estate. He built Bihar’s first corn refinery and the state’s largest gated housing community. Shruti Kishorepuria, his wife, is also on the board as an individual promoter of the company.

Their son, Karan Kishorepuria, stands out as an award-winning, next-gen business leader. Educated at Northeastern (US), he’s been recognized on America’s “100 Best & Brightest Business Students” list and BostonInno’s “25 under 25.” As Executive Director at Regaal, he pushes business expansion and impact-driven growth, blending social purpose with company strategy.

Industry Outlook

India’s maize starch market is worth ~$3.29 billion or close to ₹27,000 crore (2024) and is set to grow at 4.77% CAGR through 2029, driven by demand from food processing, animal feed, and paper industries. Proximity to maize-growing belts and diverse industrial applications creates a steady demand environment for established processors.

Who’s Making Money via the IPO OFS: Selling Shareholders

Promoters of the company, Anil Kishorepuria, Shruti Kishorepuria, BFL Private Limited (Corporate Promoter), and SRM Private Limited ( from the Promoter Group) are the key selling shareholders, taking part in the offer for sale of shares via the IPO. Anil Kishorepuria is selling shares up to ₹31.6 crore, making 15.3 times returns on investment (considering the Weighted Average Share Acquisition Cost or Average Share Purchase Cost). Shruti Kishorepuria, wife of Anil Kishorepuria, offloading shares worth ₹22.6 crore with 15.2 times returns, while BFL Pvt Ltd and SRM Pvt Ltd are cashing out ₹25.8 crore and 16 crore, respectively, making 2.7x and 5.3x returns.

Analyst View

Regaal Resources checks important boxes - industry-leading margins, strategic location advantages, and consistent revenue growth. The solid subscription numbers as of day 2, especially the massive 67.77x interest from Non-Institutional Buyers and a rising GMP, reflect strong market confidence in the company’s niche agro-processing business. That said, high debt levels, customer concentration, and reliance on a single manufacturing facility remain concerns. The IPO proceeds are expected to reduce interest costs, which should improve financial stability, but operational cash flows still need strengthening. For investors, Regaal Resources represents a play on growth combined with efficiency drives in a specialized segment. However, the financial leverage means the investment fits those willing to accept moderate risk and a longer-term horizon. The healthy subscription and GMP trends show enthusiasm, yet potential buyers should weigh the balance sheet and execution risks carefully before deciding.

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Disclaimer

Source: Regaal Resources' RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.