Regaal Resources IPO Overview

Incorporation: 2012

Business: Regaal Resources Limited is engaged in the manufacturing of maize specialty products in India, with a crushing capacity of 750 tonnes per day.

Product Portfolio:

• Maize starch and modified starch – natural plant-based starch derived from maize.

• Co-products – gluten, germ, enriched fiber, and fibre.

• Food-grade starches – maize flour, icing sugar, custard powder, and baking powder.

Manufacturing & Reach:

• Facility Location: Kishanganj, Bihar, spread over 54.03 acres with a zero liquid discharge system.

• Export Markets: Nepal and Bangladesh.

• Customer Base: Serves domestic and international clients across industries such as food processing, paper, animal feed, and adhesives.

Business Model Segments:

• End-product manufacturers.

• Intermediate product manufacturers.

• Distributors and wholesale traders.

Objects of the Issue:

• Repayment and/or pre-payment of certain outstanding borrowings – ₹159 Cr.

• General corporate purposes.

Strengths

• Strategic Location Advantage: Manufacturing facility situated close to raw material sources and key consumption markets, reducing logistics costs and ensuring steady supply.

• Efficient Procurement Model: Multiple sourcing channels for maize enable cost efficiency and supply security.

• Operational Efficiency: High capacity utilization with a sustainability-focused, zero liquid discharge process.

• Diversified Product Portfolio: Broad range of starch-based and co-products catering to multiple industries, aligning with growing demand trends.

• Established Market Presence: Well-developed domestic and export sales network with a consistent record of growth in operations and financial performance.

Risks:

• Customer Concentration Risk: A substantial portion of revenue comes from the top 10 customers; any reduction in orders or loss of these customers could significantly impact performance.

• Supplier Dependence: Over 83% of maize is sourced from the top 10 vendors, without long-term contracts, exposing the company to procurement and pricing risks.

• Seasonal Raw Material Dependency: Maize availability and cost fluctuate due to seasonal factors, potentially affecting margins.

• Leverage and Financial Covenants: High indebtedness may restrict operational flexibility and require compliance with restrictive loan conditions.

• Lack of Binding Contracts: Customer relationships, though strong, are largely non-contractual, making future order volumes uncertain.

Regaal Resources IPO:

• IPO Dates: 12 to 14 Aug 2025

• Price Band: ₹96 – ₹102 per share

• Lot Size: 144 Shares

• Total Issue Size: 306.00 Cr

• Fresh Issue: 210.00 Cr

• Offer for Sale: 96.00 Cr

• Retail Quota: 35%

• GMP: 25% (Only for Information)

• View: Apply

Allotment Link

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