Regaal Resources files draft prospectus for ₹190 crore IPO

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Regaal Resources, a maize-based specialty products manufacturer, has filed a draft prospectus with capital market regulator SEBI for its IPO. 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 proposed offer for sale (OFS) consists of shareholders selling shares up to over 3 million equity shares by Anil Kishorepuria, one of the promoters and the managing director of the Kolkata-based company, up to 1.8 million equity shares by Shruti Kishorepuria, also a promoter, up to 2.5 million equity shares by BFL Private Ltd, and up to 1.57 million equity shares by SRM Private Ltd.

The company may consider a further issue of equity shares through a private placement, preferential allotment or any other method aggregating up to ₹38 crore as pre-IPO placement. If the pre-IPO placement is completed, the amount raised under the pre-IPO placement will be reduced from the fresh issue.

The proceeds from the fresh issue to the extent of ₹147 crore will be used for repayment and /or pre-payment, in full or part, of certain borrowings availed by the FMCG company and general corporate purposes, according to its Draft Red Herring Prospectus (DRHP).

The offer is being made through the book-building process, wherein not more than 50 per cent of the net offer will be allocated to qualified institutional buyers, and not less than 15 per cent and 35 per cent of the net offer will be assigned to non-institutional and retail individual bidders respectively.

Regaal Resources is one of the largest manufacturers of maize-based specialty products in India, with an installed crushing capacity of 750 tonnes per day (TPD). Headquartered in Kolkata, its manufacturing plant is located in Bihar’s Kishanganj.

The company’s revenue from operations grew 22.97 per cent from ₹487.95 crore in FY23 to ₹600.02 crore in FY24. Profit increased from ₹16.76 crore in FY23 to ₹22.14 crore in FY24.

Pantomath Capital Advisors and Sumedha Fiscal Services are the book-running lead managers of the issue.