Regaal Resources IPO Lists with 38% Gains: What Investors Need to Know About Strengths, Risks, and Future Prospects

Regaal Resources, a leading maize-based specialty ingredient maker, listed strongly with shares jumping 38.2% to ₹141 from the IPO price of ₹102. This enthusiastic debut follows robust demand during the IPO, especially from Non-Institutional Buyers who bid nearly 356.72 times their quota. The company’s strong margins, steady revenue growth, and strategic location near maize belts underpin investor interest. However, with high debt, concentrated customers, and reliance on a single plant, challenges remain. This article breaks down what the listing gains mean for investors and what to watch in its financial health and future growth prospects.

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). Check Regaal Resources live share price here.
• Subscription Status: Closed at 159.87 times.

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’ listing at a 38.2% premium over its IPO price shows clear market confidence in its growth story and operational efficiency. The company boasts industry-leading EBITDA margins of 12.32%, strong revenue growth of nearly 37% annually over two years, and a strategic position as Bihar’s only maize processing plant. Its massive interest (evident from the subscription) during IPO highlights demand from investors seeking exposure to a niche agro-processing segment with diversified products.

That said, the company carries meaningful risks: its debt-to-equity ratio stands high at 2.08, reflecting significant leverage; operational cash flows remain negative despite improving profits; and with nearly half its revenue dependent on its top 10 customers, it faces concentration risk. The single-plant setup means any operational hiccup could impact production and sales materially.

The fresh capital raised is expected to reduce interest costs and strengthen financial stability over time. For investors, Regaal Resources blends strong growth potential with efficiency, but also exposes shareholders to moderate risk and the need for a longer investment horizon. The sizeable listing gains underscore market enthusiasm, yet prudent investors should weigh execution risks and leverage carefully before committing.

This IPO may suit those looking for a growth opportunity in agro-processing with patience for turnaround in cash flows and sensitivity to concentrated operational risks.

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5. Tap Apply Now and choose your number of lots.
6. Use INDpay UPI for instant mandate tracking.
7. Your funds will be blocked until the share allotment is finalized.

For a seamless application process, visit the INDmoney IPO page.

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.