Regaal Resources Ltd's IPO: A Boost for Maize-based Product Expansion

Regaal Resources Ltd, a major maize-based product manufacturer in India, mobilized Rs 92 crore from anchor investors ahead of its IPO. The funds raised will support expansion and debt repayment. The IPO aims to generate Rs 210 crore through fresh shares, and promoters will reduce their stake post-issue.

Regaal Resources Ltd, recognized as one of India's premier maize-based specialty product manufacturers, successfully mobilized approximately Rs 92 crore from anchor investors the day before its initial public offering (IPO) opened for subscription. The announcement was made yesterday.

Prominent institutional investors such as Taurus Mutual Fund, VPK Global Ventures Fund, and Meru Investment Fund were among the participants in the anchor round, according to a circular available on the Bombay Stock Exchange's (BSE) website. The company allotted over 89.99 lakh equity shares to these investors at Rs 102 each, resulting in a cumulative fundraising effort of Rs 91.79 crore.

The Kolkata-based firm is scheduled to launch its IPO on August 12, closing on August 14, with a price band set at Rs 96-102 per share. The IPO comprises a fresh share issue worth Rs 210 crore and an offer-for-sale of 94.12 lakh shares valued at Rs 96 crore by promoters. Post-issue, promoters' ownership will decrease from 100% to approximately 71%. A significant portion of the proceeds, Rs 159 crore, will be allocated for debt repayment. Regaal Resources, known for its zero liquid discharge maize milling, serves several industries across India and exports markets in Nepal and Bangladesh.

(With inputs from agencies.)