Regaal Resources Ltd Gears Up for Major Expansion with Rs 430 Crore Investment

Regaal Resources Ltd, a leading Indian maize-based product manufacturer, is doubling its production in Bihar with a Rs 430-crore investment. The company plans an IPO to raise Rs 210 crore for expansion and debt repayment. The project supports increased capacity, new product lines, and market expansion.

Regaal Resources Ltd, a prominent producer of maize-based specialty products in India, is set to increase its production capacity at its Bihar plant. The company has announced plans to invest Rs 430 crore, as confirmed by top company officials.

The Kolkata-headquartered firm will launch an initial public offering (IPO) worth Rs 210 crore from August 12 to August 14 to finance this expansion and settle existing debts. Currently capable of producing 825 tonnes per day (TPD), the Kishanganj-based facility aims to double its capacity to 1,650 TPD by the March quarter of the fiscal year.

Expansion funds of Rs 314 crore will be utilized in the fourth quarter of the 2025-26 fiscal, with an additional Rs 116 crore allocated for the first quarter of FY'27. The financial strategy involves a mix of debt and internal accruals, supplemented by government subsidies. Despite existing debt of Rs 570 crore, the increased production capability is expected to bolster turnover and profitability, surpassing debt by 2026.

Regaal Resources plans to enhance its product range by adding derivatives and modified starches. The company is set to expand its white-label manufacturing business and reach into South India and export markets with value-added products.

The IPO consists of a fresh issue and an offer for sale by promoters, with a price band set at Rs 96-102 per share. Post-issue, promoters' stakes will decrease from 100% to approximately 71% with the proceeds primarily allocated towards debt repayment.

Operating a zero liquid discharge facility, Regaal Resources caters to a variety of industries in India and exports to Nepal and Bangladesh. Despite past negative cash flow, the company reported significant revenue growth and a substantial increase in profit after tax.

(With inputs from agencies.)