Kolkata-based FMCG Player Regaal Resources files DRHP for IPO
The IPO, with a face value of Rs 5, is a mix of fresh issue of shares up to Rs 190 crore and an offer-for-sale up to 9 million equity shares by Promoter and Promoter Group Selling Shareholders.
Offer for Sale consists of shareholders selling shares up to 3,095,440 equity shares by Anil Kishorepuria, up to 1,800,000 equity shares by Shruti Kishorepuria, up to 2,532,300 equity shares by BFL Private Ltd, up to 1,572,260 equity shares by SRM Private Ltd.
The company, in consultation with the BRLMS, may consider a further issue of equity shares through a private placement, preferential allotment or any other method aggregating up to Rs 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 Rs 147 crore will be used for repayment and / or pre-payment, in full or part, of certain borrowings availed by the Company and general corporate purposes.
The Offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional and retail individual bidders respectively.
Headquartered in Kolkata, Regaal Resources began operations in 2018 with an initial installed capacity of 180 TPD. Over the years, the company has significantly expanded its operations, reaching a crushing capacity of 750 TPD as of October 31, 2024, following multiple capacity augmentations, including the installation of a starch dryer in Fiscal 2025.
Regaal Resources specializes in the production of native maize starch and modified starch, derived from maize, along with co-products such as gluten, germ, enriched fiber, and fiber. The company also offers value-added products including maize flour, icing sugar, custard powder, and baking powder.
The company's state-of-the-art zero liquid discharge (ZLD) maize milling facility spans 47.92 acres and is located in Kishanganj, Bihar, a strategic choice due to the region’s prominence as a maize cultivation hub. As the first maize milling company in Kishanganj, Regaal Resources benefits from the area's bumper Rabi harvest, ensuring a smooth supply of raw materials. The facility is strategically positioned close to its domestic markets in East and North India and export markets such as Nepal and Bangladesh, with borders located just 24 km and 235 km away by road, respectively.
Regaal Resources serves a broad customer base across food products, paper, animal feed, and adhesives industries, catering to three key segments End-product manufacturers, Intermediate-product manufacturers and Distributors and wholesale traders
The Company’s clients include Emami Paper Mills Limited, Century Pulp & Paper, Manioca Food Products Private Limited, and many others.
The facility features advanced infrastructure, including large warehouses and four humidity-controlled silos, each with a storage capacity of 10,000 MT, enabling the company to store up to 65,000 tonnes of maize.
Regaal Resources sources maize directly from cultivators, aggregators, and traders in Bihar, West Bengal, and other regions. Its native maize starch forms the foundation of its specialty products and ingredient solutions, which add taste, texture, and functionality to food, animal nutrition, paper, and various industrial applications.
The company distributes its products across India and exports to markets including Bangladesh, Nepal, and Malaysia. It holds an FSSAI license, further underscoring its commitment to quality and compliance.
Regaal Resources Limited's revenue from operations increased by 22.97% from ₹ 487.95 crore in Fiscal 2023 to ₹ 600.02 crore in Fiscal 2024 primarily on account of an increase in sale of products like manufactured goods and traded goods. Profit for the year increased from ₹ 16.76 crore in Fiscal 2023 to ₹ 22.14 crore to Fiscal 2024.
For the three months ended June 30, 2024, revenue from operations stood at Rs.194.87 crore and Profit after tax stood at Rs 9.17 crore.
Pantomath Capital Advisors Private Limited, and Sumedha Fiscal Services Limited are the book-running lead managers and Link Intime India Private Limited is the registrar of the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.
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