Regaal Resources IPO Soars with Strong Investor Demand

Regaal Resources Ltd's initial public offering received significant attention on its first day, with a 5.94 times subscription rate. The IPO involves a fresh issue and an offer-for-sale. The proceeds will largely be used for debt repayment, reducing promoter stakes post-issue. The company operates in maize-based specialty products.

Regaal Resources Ltd, a maize-based specialty product manufacturer, witnessed strong interest on the first day of its initial public offering (IPO) with a subscription rate of 5.94 times. According to NSE data, the share sale attracted bids for over 12.47 million shares against an offer of 2.09 million shares.

Different investor categories showed varied subscription levels: Non-Institutional Investors subscribed 10.77 times, Retail Individual Investors 5.58 times, and Qualified Institutional Buyers 2.94 times. On Monday, the company secured approximately Rs 92 crore from anchor investors.

The IPO aims to raise Rs 306 crore, split between new share issues and an offer-for-sale. Following the IPO, promoter stakes will decrease from 100% to 71%. Proceeds amounting to Rs 159 crore will be directed towards the repayment of borrowings. Regaal Resources' facility serves a diverse customer base, domestically and in regions like Nepal and Bangladesh.

(With inputs from agencies.)