IPO Details
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IPO Size
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Schedule of Regaal Resources Ltd IPO
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End date
Allotment of bids
Refund Initiation
Listing on exchange
About Regaal Resources Limited IPO
The IPO consists of a Fresh Issue of equity shares with a face value of ₹5 each, aggregating up to ₹190 crores. Additionally, there is an Offer for Sale of up to 9,000,000 equity shares with a face value of ₹5 each, aggregating up to an undisclosed amount. The total offer size includes both the Fresh Issue and the Offer for Sale, with details about the total aggregation yet to be disclosed.
Objectives of Regaal Resources Limited IPO
- For repayment and / or pre-payment of debt, in full or part, of the company’s borrowings
- General corporate purposes
Regaal Resources Limited IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | up to ₹190 crores |
Offer for Sale | Up to 9,000,000 Equity Shares of face value of ₹ 5 each |
EPS (in ₹) for FY 24 | 2.89 |
Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net issue |
Non-institutional Investors (NIIs) | Not less than 15% of the net issue |
Retail-individual Investors (RIIs) | Not less than 35% of the net offer |
Industry Outlook
India's agriculture sector demonstrated robust growth in FY2023, with total crop production increasing by 10.5% year-on-year, driven by favorable climatic conditions, improved irrigation infrastructure, and government initiatives like Krishi Nivesh and Pradhan Mantri Gram Sinchai Yojana. Maize production, in particular, surged by 32% at current prices, reflecting strong demand for maize grains. Globally, maize consumption is projected to grow at an annual rate of 1.2% from 2024 to 2033, fueled by rising demand for animal feed and food use in regions like Sub-Saharan Africa. In fact, rising domestic demand for industrial usage and poultry feed may outstrip the domestic maize cultivation in the near future.
Key growth drivers include India's expanding urbanisation and nuclear family trends, which are boosting demand for processed foods containing maize flour. The food processing sector is forecasted to grow from $866 billion in 2022 to $1,274 billion in 2027, supported by government programs like PMKSY and PLISFPI. Additionally, the organised dairy sector is increasing its reliance on maize-based feed concentrates, further driving demand.
Company Information
Regaal Resources Limited is one of India’s largest manufacturers of maize-based specialty products, with a crushing capacity of 750 tonnes per day. It produces native and modified maize starch, co-products like gluten and fiber, and value-added products such as maize flour, icing sugar, and baking powder. Headquartered in Kolkata, its manufacturing facility in Kishanganj, Bihar, spans 47.92 acres and operates with zero liquid discharge (ZLD). Strategically located in a prime maize cultivation area, it ensures a steady supply of raw materials. The company serves domestic and international markets, including Nepal and Bangladesh, catering to industries like food, paper, animal feed, and adhesives.
Regaal Resources Ltd Strengths
Strategic location advantage
The company’s manufacturing facility is located in Kishanganj, Bihar, a prime maize-growing region, ensuring proximity to raw material sources and reducing logistics costs. Additionally, the facility benefits from an exclusive harvesting window for Rabi maize in Bihar and West Bengal, providing a consistent and competitive supply of high-quality maize.
Multifaceted procurement strategy
The company sources maize from multiple avenues, including traders, farmers through aggregators, and FMCG/agri-distribution companies. This diversification ensures steady raw material availability at competitive rates while reducing dependency on any single source.
Wide product portfolio and industry applications
The company is among the top 10 manufacturers of maize-based specialty products in India, with a diversified portfolio that includes native and modified starches, co-products like gluten and fiber, and value-added products such as maize flour and baking powder. These products cater to various industries like food, beverage, textiles, paper, and adhesives.
Risks of Regaal Resources Limited IPO
1. Dependency on key customers: The company relies heavily on its top 10 customers, who contribute a significant portion of its sales. Any loss or reduction in purchases by these customers could have a material adverse impact on its business operations, financial results, and overall condition.
2. Reliance on key vendors for maize procurement: More than 83% of the company's maize purchases come from its top 10 vendors, with no long-term contracts in place. Any disruption in supply, price increases, or loss of these vendors could negatively affect the company's operations and profitability.
3. Seasonal nature of raw material supply: Maize, the primary raw material, is seasonal and subject to fluctuations in availability due to weather conditions and post-harvest losses. Delays or interruptions in supply, along with price volatility, could impact the company's production costs and ability to meet customer demand.
All Financial Information about Regaal Resources Ltd
Comparison with peers
| Name of Company | Total income (in ₹ crore) | EPS (Basic) ₹ | NAV (₹ per share) | P/E |
|---|---|---|---|---|
Regaal Resources Limited | 601.07 | 2.89 | 16.51 | - |
Sanstar Limited | 1,081.68 | 4.75 | 15.49 | 25.11 |
Gujarat Ambuja Exports Limited | 5,071.42 | 7.54 | 60.37 | 16.38 |
Gulshan Polyols Limited | 1,390.18 | 2.85 | 94.65 | 62.46 |
Sukhjit Starch and Chemicals Limited | 1,385.03 | 15.99 | 160.88 | 17.04 |
Anchor Investor Bidding Date: TBA
IPO Registrar and Book Running Lead Manager
- Registrar: Link Intime India Private Limited
- Book Running Lead Managers: Pantomath Capital Advisors
Private Limited, Sumedha Fiscal Services Limited
Business Model
The company operates a business-to-business (B2B) model as one of India’s largest manufacturers of maize-based specialty products. It sources raw maize primarily from traders, farmers, and agri-distribution companies, leveraging its strategic location in a key maize-growing region. The company processes maize into a diverse range of products, including native and modified starches, gluten, fiber, and value-added items like maize flour and baking powder. These products cater to various industries such as food and beverages, paper, textiles, animal feed, and adhesives. By focusing on both domestic and export markets (e.g., Nepal and Bangladesh), the company ensures a broad customer base and mutltiple revenue streams.
Company Growth Trajectory
The company has demonstrated strong growth in its revenue from operations, increasing from ₹379.85 crores in FY22 to ₹487.95 crores in FY23, and further to ₹600.02 crores in FY24, reflecting a compound annual growth rate (CAGR) of approximately 25.68%. Its EBITDA also showcased robust growth, rising from ₹46.19 crores in FY22 to ₹40.67 crores in FY23 and reaching ₹56.36 crores in FY24.
Regaal Resources Limited Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 601.07 | 488.67 | 380.37 |
Profit Before Tax (in ₹ crores) | 29.12 | 22.59 | 34.92 |
Profit After Tax (in ₹ crores) | 22.14 | 16.75 | 26.11 |
EPS | 2.89 | 2.20 | 3.57 |
EBITDA (in ₹ crores) | 56.36 | 40.67 | 46.19 |
Regaal Resources Limited Cash Flow Statement
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 29.12 | 22.59 | 34.92 |
Net Cash from (used in) Operating Activities (in ₹ crores) | (22.51) | 34.62 | 17.10 |
Net Cash from (used in) Investing Activities (in ₹ crores) | (106.30) | (69.37) | (44.38) |
Net Cash from (used in) Financing Activities (in ₹ crores) | 148.50 | 34.75 | 27.23 |
Net Cash and Cash Equivalents (in ₹ crores) | 19.68 | 0.007 | (0.041) |
Cash and cash equivalent at the end of the year/period | 1.97 | 0.009 | 0.008 |
How to Check Allotment Status of Regaal Resources Limited IPO?
1. Visit the Registrar's Website
To check the IPO allotment status for Regaal Resources Limited IPO, visit the official website of Link Intime India Private Limited, the registrar for this IPO. On their IPO allotment status page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then, click the 'Submit' button to view your allotment status. Ensure you have the necessary details ready for a quick and accurate check.
2. Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page.
On the BSE IPO page, follow these steps:
- Select 'Equity' from the dropdown menu
- Choose 'Regaal Resources Limited' in the next dropdown
- Enter your application number
- Enter your PAN
- Click 'Search'
Your Regaal Resources IPO allotment status will be displayed.
3. Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check Regaal Resources IPO allotment status.
Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:
- Application number
- PAN
Then click 'Submit'. Your Regaal Resources IPO bid and allotment details will be displayed.
How to Apply for Regaal Resources Limited IPO?
- Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Regaal Resources Ltd IPO FAQs
What is the Regaal Resources Ltd IPO?
Regaal Resources Ltd IPO consists of a Fresh Issue of equity shares with a face value of ₹5 each, aggregating up to ₹190 crores. Additionally, there is an Offer for Sale of up to 9,000,000 equity shares with a face value of ₹5 each.
Is Regaal Resources IPO coming?
Yes, Regaal Resources Ltd is expected to come up with its IPO soon.
Who is the CEO of Regaal Resources?
Anil Kishorepuria is the chairman of Regaal Resources Ltd.
What is the lot size of shares of Regaal Resources Ltd IPO?
The company hasn’t given any information on the lot size yet.
From where can I read more about the IPO of Regaal Resources Ltd?
You may read more about Regaal Resources Ltd and its IPO from the company’s draft red herring prospectus (DRHP) here
