Regaal Resources IPO opens today: Should you invest?

About the Issue:
Regaal Resources Ltd. IPO is preparing to launch its Initial Public Offering (IPO) for equity shares. See the issue details below.

Objects of the Issue:
Regaal Resources plans to use the IPO proceeds mainly for repaying or pre-paying certain outstanding borrowings amounting to Rs 159 crore, with the balance allocated towards general corporate purposes to support its overall business activities.

Promoter holding:
Before the IPO, the promoters held 99.56 per cent of the company’s shares, with the group comprising Anil Kishorepuria, Shruti Kishorepuria, Karan Kishorepuria, and BFL Private Limited.

Company Profile:
Regaal Resources Limited is an Indian company engaged in manufacturing maize-based specialty products catering to industries like food, paper, animal feed, adhesives, pharmaceuticals, and textiles. Incorporated in 2012 and headquartered in Kolkata, the company operates a state-of-the-art Zero Liquid Discharge maize milling plant in Kishanganj, Bihar—the first and only such plant in the state. Strategically located in a major maize-growing region, the facility has an installed crushing capacity of 750 TPD (Tons per day) (as of May 31, 2025) and total maize storage capacity of 65,000 tonnes, supported by large warehouses and humidity-controlled silos.

The product portfolio includes native and modified maize starches, co-products like gluten and germ, and value-added items such as maize flour, icing sugar, custard powder, and baking powder. The company serves manufacturers, intermediate producers, and distributors, with notable clients including Emami Paper Mills and Century Pulp & Paper.

The company sells across India and exports to Bangladesh, Nepal, and Malaysia. It has demonstrated strong financial growth, with revenue growing at a CAGR of 36.95 per cent between FY 2023 and FY 2025. Led by promoters Anil, Shruti, and Karan Kishorepuria, along with BFL Private Limited, Regaal plans capacity expansion, product diversification, and wider geographic reach. 

Financials 

The company has delivered strong growth over the last three fiscal years. Total income rose from Rs 488.67 crore in FY 2023 to Rs 917.58 crore in FY 2025, an increase of 87.7 per cent, driven by capacity expansion and market diversification. Profit After Tax grew from Rs 16.76 crore to Rs 47.67 crore, marking a 184.4 per cent rise, while EBITDA surged from Rs 40.67 crore to Rs 112.79 crore, up 177.4 per cent, reflecting improved operational efficiency and stronger margins.

The company’s total assets expanded from Rs 371.52 crore in FY 2023 to Rs 860.27 crore in FY 2025, a 131.5 per cent increase, supported by investment in manufacturing and infrastructure. Net worth rose from Rs 104.41 crore to Rs 235.41 crore, up 125.4 per cent, and reserves and surplus climbed from Rs 102.92 crore to Rs 202.44 crore, an increase of 96.6 per cent, indicating healthy profit retention. However, total borrowings also increased sharply from Rs 188.93 crore to Rs 507.05 crore, a 168.4 per cent rise, showing higher leverage to fund growth.

Overall, the company’s financials reflect rapid expansion, significant margin improvement, and strong asset growth, although the substantial increase in debt highlights the need for careful leverage management.

Valuation & Returns 

At the upper end of the IPO price band of Rs 102, Regaal Resources Limited’s P/E ratio works out to 21.98x based on FY25 diluted EPS of Rs 4.64. This places it below higher-valued peers like Sanstar Limited (32.95x) and Gulshan Polyols Limited (43.04x), but above Gujarat Ambuja Exports Limited (19.12x) and Sukhjit Starch & Chemicals Limited (13.37x).

Regaal’s Return on Net Worth (RONW) stands at 10.51 per cent, which is above Gulshan Polyols (4.02 per cent), Sanstar (7.03 per cent), and Sukhjit (7.36 per cent), and higher than Gujarat Ambuja Exports (8.30 per cent). This reflects decent capital efficiency compared to peers.

Overall, Regaal is coming to the market at a mid-range valuation, supported by reasonable profitability, sector growth prospects, and expansion plans. The pricing leaves scope for upside if execution remains strong post-IPO.

Outlook:
Regaal Resources Limited’s IPO comes with a clear growth roadmap built on capacity expansion, deleveraging, and product diversification. The planned brownfield expansion from 750 TPD to 1,650 TPD will enable the company to capture rising demand in animal nutrition, snacks, confectionery, and convenience foods. Its Kishanganj facility’s ample unused land supports future scalability.

Using IPO proceeds to repay debt will strengthen the balance sheet, lower finance costs, and improve cash flows, boosting financial flexibility for expansion. Diversifying into derivative products like maltodextrin and liquid glucose positions the company to tap the growing modified starch market, potentially enhancing margins.

Geographic expansion into South India and deeper international penetration could broaden its customer base, while the development of a white-labeling business offers an additional high-growth revenue stream.

A strong track record—36.95 per cent CAGR in revenue and 66.53 per cent CAGR in EBITDA over FY23-FY25—combined with strategic location, efficient procurement, sustainability-driven operations, and experienced management provides competitive strength.

While risks remain from raw material price volatility, regulations, and competition, Regaal Resources presents a compelling long-term opportunity for investors seeking growth backed by operational efficiency and multiple expansion levers.

Considering the issue details and the elevated valuation, we recommend subscribing to this IPO.