Regaal Resources – IPO Review

by Paresh Gordhandas, CA & Research Analyst.

Regaal Resources Limited, with over a decade of operational experience, is a manufacturer of maize-based specialty products like starch, modified starches, and food-grade powders. It operates a large-scale, zero-liquid-discharge plant in Kishanganj, Bihar, with exports to Nepal and Bangladesh, and a diversified customer base in food, paper, adhesives, and animal feed sectors.

Strengths

Strong backward-integrated manufacturing setup.
Diverse product portfolio catering to multiple industries.
Exports contribute to geographical diversification.
Reputed clientele including Century Pulp & Paper, Emami Paper Mills, etc.

Concerns

Business concentrated on agro-commodities — exposed to raw material price fluctuations.
Limited export footprint beyond neighboring countries.
Highly competitive and margin-sensitive industry.

Financial Snapshot

(As per FY25 provisional data)

Revenue: Rs. 591 crore
PAT: Rs. 35.68 crore
EBITDA: Rs. 74.83 crore
EPS (diluted): Rs. 5.72
Post-issue P/E: Approx. 17.8x at upper price band

Valuation

The issue is priced at a reasonable valuation considering the FY25 earnings and business stability. Compared to listed peers in the starch and agri-processing segments, the IPO valuation appears fairly aligned.

Chanakya’s View

Given its steady growth, reputed clientele, and reasonable valuation, Regaal Resources IPO appears suitable for long-term investors with moderate risk appetite. However, listing gains may be modest due to sector cyclicality and limited market excitement.

IPO opens on 12 August 2025, Closes on 14 August 2025, Upper Price Rs. 102 Lot 144 Shares

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