Regaal Resources, a maize-based specialty products manufacturer, has recently filed a draft prospectus for its IPO with the capital market regulator SEBI. The IPO will consist of a fresh issue of shares of up to ₹190 crore and an offer for sale of up to 9 million equity shares. The company is one of the largest manufacturers of maize-based specialty products in India, with an installed crushing capacity of 750 tonnes per day.
The proposed offer for sale includes shareholders selling shares, with Anil Kishorepuria and Shruti Kishorepuria, both promoters, divesting a significant portion of their equity. Additionally, BFL Private Ltd and SRM Private Ltd are also planning to sell a portion of their equity shares through the offer for sale.
The proceeds from the fresh issue will primarily be used for repayment or pre-payment of certain borrowings availed by the company, as well as for general corporate purposes. The offer will be made through the book-building process, with allocations to qualified institutional buyers, non-institutional investors, and retail individual bidders.
Regaal Resources has shown strong financial performance, with revenue from operations growing by 22.97% from FY23 to FY24. The company’s profit also increased significantly during the same period. Pantomath Capital Advisors and Sumedha Fiscal Services are the book-running lead managers for the IPO.
Overall, the IPO of Regaal Resources presents an opportunity for investors to participate in the growth story of a leading player in the maize-based specialty products market in India. With a clear plan for utilization of proceeds and strong financial performance, the company seems well-positioned to attract investor interest in the upcoming IPO.
