Kolkata-headquartered Regaal Resources files IPO papers

Regaal Resources, a manufacturer of maize-based starch, specialty starches, food-grade starches and starch derivative products, on Tuesday filed a draft red herring prospectus (DRHP) with capital markets regulator Securities and Exchange Board of India (SEBI) to float an initial public offer (IPO). The Kolkata-based company's proposed IPO will be a combination of fresh issuance and an offer for sale (OFS), which means that part of the proceeds will go to the company. Regaal Resources plans to utilise the proceeds from the fresh issuance to clear some of its liabilities. 

Here are key things to know about the proposed Regaal Resources IPO: 

Regaal Resources IPO Fresh Issuance

The proposed IPO of Regaal Resources will include fresh issuance of shares worth up to Rs 190 crore and an offer for sale (OFS) of up to 90 lakh shares by promoters and existing shareholders. 

Regaal Resources Earnings

For the financial year ended March 31, 2024, the company registered Rs 600 crore in revenue, up 23 per cent over the previous year.

Listing of Regaal Resources shares

Regaal Resources shares are set to be listed on stock exchanges NSE and BSE.

What is Regaal Resources and what does it do?

Regaal Resources is an agro-processing company headquartered in Kolkata.

The company produces a host of starch-based products including maize starch, specialty starch and food-grade starch, with an installed crushing capacity of 750 tonnes per day.

Founded in 2016, Regaal Resources started production in 2018. The company has since shown tremendous growth, expanding its capacity from 180 metric tonnes per day (MTPD) to more than 750 MTPD of daily crushing, according to its website.

The company has a manufacturing facility located in Kishanganj, Bihar.

Regaal Resources: Fund utilisation

Out of the potential proceeds, the company plans to dedicate Rs 147 crore towards reducing certain outstanding borrowings.

As of October 2024, the company's debt stood at Rs 439.5 crore.

The remainder of the proceeds will be channelled towards tasks such as the enhancement of operational efficiency and overall business growth, and for general corporate purposes. 

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