Regaal Resources Ltd (MAIN BOARD)

IPO Details

Key Performance Indicator 

• Incorporation: 2012

• Core Business: Maize specialty products manufacturing

• Location: Kishanganj, Bihar (47.92-acre facility, zero liquid discharge)

• Capacity:

  • Crushing: 750 tonnes/day

  • Warehousing: 65,000 tonnes (4 warehouses)

• Employees: 453 (as of October 2024)

Product Portfolio

1. Maize Starch & Modified Starch: Plant-based starch for industrial/food use.

2. Co-products: Gluten, germ, fiber (animal feed/industrial applications).

3. Food-Grade Starches:

   • Maize flour, icing sugar, custard powder, baking powder.

Market Reach

• Domestic: Serves food, paper, adhesives, and animal feed industries.

• Exports: Nepal, Bangladesh.

Customer Segments

1. End-product manufacturers (e.g., food, paper).

2. Intermediate product manufacturers.

3. Distributors/wholesalers.

Key Clients

• Paper: Emami Paper Mills, Century Pulp & Paper, Genus Paper.

• Food: Manioca Food Products, Shri Guru Oil Industries.

• Animal Feed: Kush Proteins, Mayank Cattle Food.

• Distributors: Aarnav Sales, AMV Sales, Vasu & Sons.
  
   

  Objects of the Issue (IPO Purpose)

  1. Debt Reduction:

     • Repayment/Pre-payment of Borrowings:

       • A portion of the IPO proceeds will be used to repay or prepay (fully or partially) the company’s existing outstanding debt.

       • Rationale:

         • Reduce interest burden, improving profitability.

         • Strengthen the balance sheet by lowering leverage (debt-to-equity ratio).

         • Enhance creditworthiness for future financing needs.

  2. General Corporate Purposes (GCP):

     • Flexible allocation for operational/strategic needs, such as:

       • Working capital requirements (raw material procurement, inventory).

       • Capex for capacity expansion or facility upgrades.

       • R&D or product diversification.

       • Market expansion (domestic/international).

     • Rationale:

       • Provides agility to fund growth initiatives without raising additional debt.

Strength

Strategic Manufacturing Location : The facility is located in Bihar’s Kishanganj district, a major maize hub, close to West Bengal and Assam borders, ensuring easy access to raw materials and consumption markets.

High-Utilization Sustainable Facility : The company operates a well-maintained, upgraded manufacturing unit using wet milling processes, resulting in high capacity utilization and operational efficiency.

 Diverse Product Portfolio with Rapid Growth : Among the top 10 maize milling companies in India, the company offers a wide range of maize-based specialty products and recorded a 36.95% revenue CAGR from FY23 to FY25.

Weakness

Legal Case Against Promoter : One of the promoters, Anil Kishorepuria, is involved in a legal proceeding under the IPC and Prevention of Corruption Act. Any negative outcome may harm the company's reputation and operations.

High Vendor Dependency : Over 83% of maize purchases come from the top 10 vendors, with no long-term contracts. Losing these vendors or price hikes could adversely affect supply and revenues.

Past Capital Market Restrictions on Promoter : Promoter Anil Kishorepuria and some promoter group members were previously restricted from participating in capital market activities, which may raise concerns about governance and compliance.