Debut of Regaal Resources successful as shares open at a 38% higher price
Regaal Resources, a maize-based speciality products manufacturer, made a strong debut on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on August 20, 2025. The company's shares listed at around Rs 141 per share, which was a premium of approximately 38% over the Initial Public Offering (IPO) price of Rs 102.
The highly successful IPO was subscribed 159.88 times, reflecting an extremely strong investor demand across all categories. Non-Institutional Investors (NIIs) showed the most interest, subscribing the IPO 356.73 times, followed by Qualified Institutional Buyers (QIBs) at 190.97 times and Retail Individual Investors at 57.75 times.
Pantomath Capital Advisors Pvt. Ltd. served as the book-running lead manager for the IPO, while MUFG Intime India Pvt. Ltd. worked as the registrar. The issue consisted of a fresh issue of 2.06 crore shares worth Rs 209.99 crore and an offer for sale of 0.94 crore shares amounting to Rs 96 crore. As a result, Regaal Resources raised a total of Rs 306 crore from the primary markets.
The proceeds from the IPO will be primarily used for repayment/prepayment of outstanding borrowings, amounting to about Rs 159 crore as of June 2025, and for general corporate purposes. Post-IPO, the promoters' stake in the company was appropriately diluted.
Regaal Resources is positioned as a promising investment opportunity, given its strong market debut and robust subscription. The company manufactures a broad range of maize-based products, including maize starch and modified starch, co-products such as gluten, germ, enriched fibre and fibre, food-grade starches like maize flour, icing sugar, custard powder, and baking powder. With a crushing capacity of 750 tonnes per day, Regaal Resources manufactures maize speciality products in India.
However, it is important to note that further performance post-listing would require updated stock price and financial data beyond the initial few days of trading. Nonetheless, the strong premium at which the shares debuted and the initial gains made by investors who subscribed at the IPO price indicate a positive investment potential at this early stage on the NSE.
For small NIIs, the lot size investment in the Regaal Resources IPO was 14 lots of 2,016 shares, summing to Rs 2 lakh. For larger NIIs, the lot size investment was 69 lots of 9,936 shares, totalling Rs 10 lakh. The lot size for a retail application was 144 shares, amounting to Rs 13,824.
In conclusion, Regaal Resources' successful IPO and strong stock market debut make it an attractive investment opportunity for those seeking long-term growth. As the company focuses on debt reduction and growth, it presents a promising prospect for investors looking to capitalise on its early success.
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