Regaal Resources
- Regaal Resources is coming out with a 100% book building; initial public offering (IPO) of 2,99,99,520 shares of Rs 5 each in a price band Rs 96-102 per equity share.
- Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
- The issue will open for subscription on August 12, 2025 and will close on August 14, 2025.
- The shares will be listed on BSE as well as NSE.
- The face value of the share is Rs 5 and is priced 19.20 times of its face value on the lower side and 20.40 times on the higher side.
- Book running lead managers to the issue are Pantomath Capital Advisors and Sumedha Fiscal Services.
- Compliance Officer for the issue is Tinku Kumar Gupta.
Profile of the company
Regaal Resource is one of the largest manufacturers of maize based specialty products in India, in terms of crushing capacity, with a total installed crushing capacity of 750 tonnes per day (TPD). It manufactures: (i) Native maize starch and modified starch - a plant-based natural starch that is produced from maize; (ii) Co-products - includes gluten, germ, enriched fiber and fiber; and (iii) Value added products - food grade starches such as maize flour, icing sugar, custard powder and baking powder.
The company is headquartered in Kolkata and its manufacturing plant with zero liquid discharge (ZLD) maize milling plant (Manufacturing Facility) spread across 54.03 acres is located in Kishanganj, Bihar. The company strategically situated its plant in Bihar since it is one of India's major hubs for maize cultivation. It is the first maize milling company to have established its plant in Kishanganj district of Bihar which is the maize catchment area and has a bumper harvest in Rabi season (i.e. an increase of in maize production from 91,680 MT in Fiscal 2023 to 417,511 MT in Fiscal 2024) which ensures smooth supply of maize during the season. The strategic location of its Manufacturing Facility is heightened by the proximity to its market for the sale of its products i.e., the East and North India, its key export markets i.e. Nepal and Bangladesh - the Nepal and Bangladesh borders are only 24 kms and 235 kms by road from its Manufacturing Facility.
The company sources maize directly from the cultivators, through aggregators, with whom it has long-standing relationships and from traders in Bihar and West Bengal amongst other sources. It is the only maize milling plant in Bihar. This gives it a significant competitive advantage. Establishing direct relation with farmers ensures smooth supply of raw material and this direct procurement strategy also aids in lowering procurement cost and getting access to good quality material. Diversifying its sources of maize ensures that it is not overly dependent on any one source, it is able to negotiate the best available rates and have access to an uninterrupted supply of raw material thereby enabling it to de-risk its supply chain.
Proceed is being used for:
- Repayment and/ or pre-payment, in full or in part, of its certain outstanding borrowings availed by the company
- General Corporate Purposes
Industry Overview
Maize production in India rose by 12.2% in FY2025, owing to improved seed availability, expansion of storage and marketing infrastructure, rising public-private partnerships, and conducive agricultural subsidies. The index number for maize production crossed 200 in FY2022 and also recorded a consistent rise between FY2020 and FY2023. Maize is an important crop in India responsible for the employment of over 650 million farmers. As of Local Marketing Year 2022/23 (November 2022 to October 2023), India is the sixth1 largest maize producer globally. India’s maize production grew at a CAGR of 7.3% between FY2020 and FY2025, rising from 28.8 million tonnes to 42.3 million tonnes. The annual increase in production in FY2025 stood at 12.2%, primarily driven by a significant number of farmers choosing to plant maize instead of pulses and cotton, in response to a delayed and slow-progressing monsoon. In order to meet the country’s domestic demand, India will need to increase its maize production by 10 million tonnes over the next five years compared to FY2023’s 38.1 million tonnes. To meet this target, India must systematically channel investments into its national maize supply chains and distribution networks.
Maize is the largest crop in the Feed grain segment in India. Maize prices were below Rs 2,000 per quintal in commercial markets till 2022-23 but have crossed Rs 2,000 / quintal mark in 2023-24. For 2025-26 the minimum support price for maize is Rs 2,400/quintal which is Rs 175 more than the last year price. Wholesale prices for maize have seen a wide variation, ranging from Rs 1,769 /quintal in January 2019 to Rs 2,151/ quintal in June 2025. In January 2025, the wholesale maize prices recorded peak values of Rs 2,333/quintal. High prices are attributed to increased activity in both procurement and ethanol production in country.
Maize has emerged as important crop in the non-traditional regions i.e., peninsular India. State like Madhya Pradesh which ranks 1st in both area (2.31 Mn ha) and production (6.71 Mn tons) has much lower productivity (2.9 Mn/Ha) compared to states of, Tamil Nadu (5.48 Mn/ha) and West Bengal (6.94 Mn/ha). Bihar and West Bengal is amongst one of the traditional maize producing state. According to third advance estimates published in May 2025 by Department of Agriculture & Farmers Welfare, Madhya Pradesh is the largest producer of Maize in India. It contributed 14.83% of the total Maize production in India. The other top 3 maize producing states of India are Bihar, Madhya Pradesh and Tamil Nadu. In Bihar, districts of Saran, Siwan, Gopalganj, East Champaran, West Champaran, Sheohar, Sitamarhi, Madhubani, Darbhanga, Muzaffarpur, Vaishali, Samastipur and Begusarai are majorly the maize growing districts. High seed replacement rates for Rabi Maize in Bihar helps in above average productivity of state in maize cultivation.
Pros and strengths
Strategic locational advantage of its Manufacturing Facility close to raw material and end consumption markets: The company is strategically located in the heart of one of India’s largest maize growing hubs i.e. in Kishanganj district in Bihar, which is one of the top 3 maize cultivating states in India. Its Manufacturing Facility is also strategically located 21 Km from the West Bengal border which is also a key area for maize cultivation and 209 Km from Assam border. In 2024-2025, the predominant maize growing states that contributed more than 80% of the total maize production are Madhya Pradesh (15.87%), Karnataka (14.57%), Bihar (11.58%), Maharashtra (11.52%), Telangana (7.12%), West Bengal (6.57%), Rajasthan (6.36%), Tamil Nadu (6.24%), Andhra Pradesh (4.66%) and Uttar Pradesh (4.02%). Bihar and West Bengal are traditional maize producing states in the country. The Seemanchal and Koshi regions of Bihar have become major hubs for maize farming in recent years. Maize has replaced other crops as the main cash crop for farmers in the Seemanchal districts of Bihar such as Purnea, Kishanganj, Araria, and Katihar.
Efficient procurement strategy aided by multifaceted raw material sourcing avenues: The company has over the years honed its procurement strategy and managed to diversify its sourcing of its key raw material i.e. maize from multiple sources. Its raw material sourcing strategy entails it in procuring maize primarily from the sources i.e. Farmers / cultivators through aggregators; Traders in Bihar and West Bengal; and Agri-distribution companies. Diversifying its sources of maize ensures that it is not overly dependent on any one source, it is able to negotiate competitive rates and have steady supply of raw material. It primarily sources its maize requirements from traders, the majority of whom are based in Bihar and West Bengal. In addition to traders, it also procures maize from agri-distribution companies and directly from farmers or cultivators through aggregators.
Sustainability driven Manufacturing Facility with high levels of utilization: One of the key areas of its focus since inception has been its Manufacturing Facility and wet milling process. It has continuously improved and upgraded its Manufacturing Facility and enhanced and streamlined its wet milling processes which is also reflected in its high levels of capacity utilization. Its Manufacturing Facility also has a total installed co-generation power plant of 7.1 MW which allows it to be self-sufficient to a large extent for its power needs. Its co-generation boiler and power plant (Power Plant) is a dual feed plant (i.e. a Power Plant that can utilise either coal or husk for power generation) for captive power generation and utilisation. This co-generation plant not only ensures a steady power supply, reducing dependence on external sources, but also enhances operational efficiency by utilizing the pressure and temperature differential between steam production and steam utilisation points. This process optimizes resource use, lowers production costs, and minimizes environmental impact by allowing use of sustainable fuel sources like husk. By generating electricity and thermal energy simultaneously, the cogeneration plant supports its commitment to sustainability.
Diversified portfolio of products catering to wide range of industries: Over the years, it has diversified its product range and manufacture an assorted range of maize based speciality products. It continually diversifies its product bouquet. Its diversified product bouquet i.e. native maize starch finds application across varied industries such as food & beverage, textile, paper, adhesive sectors. Starch is used as a binder and filler for tablets and capsules, as well as to strengthen ice cream cones, give cloth weight, and increase the quality of paper for writing and printing.
Risks and concerns
Purchase majority of maize from top 10 vendors: A few select vendors/suppliers constitute a vast majority of its total purchase of maize. It also sources maize directly from the cultivators, through aggregators, with whom it does not have long-term contracts or arrangements. The company has purchased 94.53%, 93.70% and 83.43% of total maize from top 10 vendors in FY25, FY24 and FY23 respectively. Its inability to maintain its relationship with its existing top 10 vendors of maize and/or failure to procure maize from vendors and suppliers on favourable terms may have an adverse effect on its revenue, results of operation and would have an impact on its financial condition.
Geographical constrain: The company operates from one manufacturing facility situated at Kishanganj, Bihar. Its manufacturing operations are exposed to operating risks such as failure of equipment, power supply interruptions, labour disputes, natural disasters and industrial accidents. The occurrence of any of these risks could affect the company’s operations by causing production at its manufacturing unit to shut down or slowdown. Although it has installed a duel feed co-generation plant and boiler (i.e. a power plant that can utilise either coal or husk for power generation) and the company takes reasonable precautions to minimize the risk of any significant operational problems at its facility, it cannot assure that one or more of the factors mentioned above will not occur, which could have a material adverse effect on the company’s results of operations and financial condition.
Significant revenue comes from top 10 customers: The company caters to diverse set of customers, however, its top 10 customers contribute to a significant portion of its sales. The company has garnered 45.46%, 50.32% and 55.11% of its total revenue from top 10 customers in FY25, FY24 and FY23 respectively. The loss of such customers or a substantial reduction in purchases by such customers will have a material adverse impact on its business, results of operations and financial condition.
Business operations require significant working capital: The company’s business operations are subject to significant working capital requirements. Currently, it meets its working capital requirements through a mix of internal accruals and working capital facilities from lenders. While its internal accruals, working capital facilities availed from its lenders and others will be sufficient to address its working capital requirements, it cannot assure that it will continue to generate sufficient internal accruals and, or, be able to raise adequate working capital from lenders to address its future needs. Further, while there have been no instances in Fiscal 2025, Fiscal 2024, and Fiscal 2023, wherein the company was unable to meet its working capital requirement, any inability to meet its present working capital requirements or its enhanced working capital requirements will have an adverse impact on its results of operation, business and financial condition.
Outlook
Regaal Resources manufactures maize specialty products in India, with a crushing capacity of 750 tonnes per day. The company has efficient procurement strategy aided by multifaceted raw material sourcing avenues. It has diversified product portfolio serving various industries, well-positioned to leverage industry trends. On the concern side, purchase of maize from its top 10 vendors constituted more than 83% of its total cost of purchase of maize, in each of the financial periods disclosed, and it typically does not enter into long-term contracts or arrangements with such vendors. Any loss of such vendors/suppliers or any increase in the price could have adverse impact on its business and revenue. Moreover, the company operates from one manufacturing facility situated at Kishanganj, Bihar. The loss, shutdown or slowdown of operations at the company’s facility could have a material adverse effect on the company’s results of operations and financial condition.
The issue has been offering 2,99,99,520 shares in a price band of Rs 96-102 per equity share. The aggregate size of the offer is around Rs 288.00 crore to Rs 306.00 crore based on lower and upper price band respectively. Minimum application is to be made for 144 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations increased by 52.52% from Rs 6,000.23 million in Fiscal 2024 to Rs 9,151.61 million in Fiscal 2025 primarily on account of an increase in sale of products from Rs 5,906.63 million to Rs 8,980.22 million. Moreover, the company’s profit after tax for the year increased by 115.28% from Rs 221.42 million in Fiscal 2024 to Rs 476.68 million to Fiscal 2025.
The company manufactures variety of modified starch products such as white dextrin and yellow dextrin, oxidized starch and edible starch. It proposes to add modified starch products such as cationic starch, carboxyl methyl starch, Indian Pharmacopoeia grade starch and pregel starch. Modified starch is a crucial and useful ingredient found in manufacturing ready-to-eat food products. The growth of modified starch market is anticipated due to rising consumer demand for processed foods, paper, textile and chemicals industry over the coming years. Along with ready to eat products, modified starch is utilized in a wide range of industries, including pharmaceuticals, paper, cosmetics, personal care, and textiles due to its varied technical properties. The personal care and cosmetics industries use modified starch as a versatile additive. Manufacturers are investing in technology and research for use of organic ingredients like modified starch, as the demand for natural products has grown over the past few years, which is expected to fuel product demand in the coming years.
