Regaal Resources IPO Sees Strong Demand — Should You Subscribe at ₹96–102 Price Band?
Strong demand for Regaal Resources IPO with retail and NII segments leading. Key details, price band, and GMP inside.
Regaal Resources IPO Updates: Anchor Investment of ₹92 Cr, Promoter Stake to Drop to 71%
Regaal Resources IPO Day 2: Strong Investor Response, 12.47× Subscribed
The initial public offering (IPO) of Regaal Resources Ltd, a specialty maize products manufacturer, continued to see robust demand on Day 2, with total subscriptions reaching 12.47 times as of Wednesday. Market observers note that the grey market premium (GMP) suggests up to 31% listing gains, fueling further interest among retail and institutional investors.
On Day 1 (Tuesday), the IPO saw 5.94× subscription, underscoring strong appetite across investor categories:
♦ Non-Institutional Investors (NIIs): 10.77× subscribed
♦ Retail Individual Investors (RIIs): 5.58× subscribed
♦ Qualified Institutional Buyers (QIBs): 2.94× subscribed
The IPO price band is fixed at ₹96–₹102 per share. The issue comprises:
♦ Fresh issue: ₹210 crore
♦ Offer-for-sale (OFS): 94.12 lakh shares worth ₹96 crore
♦ Total size: ₹306 crore (upper band)
On Monday, Regaal Resources raised ₹92 crore from anchor investors, further strengthening confidence in the offering.
Use of Proceeds & Ownership Change
Out of the ₹210 crore fresh issue, ₹159 crore will be used to repay or prepay specific borrowings, improving the company's balance sheet. Following the IPO, promoter holding will decline from 100% to around 71%, broadening the shareholder base.
About Regaal Resources
Regaal Resources operates a maize milling facility with zero liquid discharge, supplying starch-based specialty products to food processing, paper, animal feed, and adhesives industries. The company also exports to Nepal and Bangladesh, giving it a regional footprint beyond India.
Investor Takeaway
With high subscription levels, strong anchor backing, and a healthy GMP, analysts expect positive listing prospects. However, as with any IPO, investors should consider valuation, debt repayment plans, and industry dynamics before subscribing.
