Regaal Resources IPO GMP & Subscription status

Core Business & Overview

Regaal Resources Limited (RRL) is a leading agro-processing company in India, specializing in corn wet milling. Key highlights:

• Manufactures maize starch, specialty starches, food-grade starch, and starch derivatives such as maize fiber, gluten, corn steep liquor, yellow and white dextrin, corn flour, icing sugar, baking powder, and custard powder.
• Incorporated in 2012, production began in 2018. Since then, it has expanded its crushing capacity from 180 MTPD to 750 MTPD, becoming the second-largest player in Eastern India in its sector.
• Headquartered in Kolkata with its manufacturing facility on a 50-acre (approx.) site in Kishanganj, Bihar, a key maize-growing region. The plant features ISO certification, zero-liquid discharge (ZLD), captive power, and strong automation and R&D focus.
• Products serve diverse industries including food, paper, pharmaceuticals, textiles, animal feed, as well as markets in Nepal and Bangladesh.

Strengths

1. Strategic Location & Infrastructure
   • Situated near maize-producing zones (Bihar), reducing raw material logistics costs and ensuring supply reliability.
   • Modern, sustainability-oriented facility with ZLD systems and captive power ensures efficiency.
2. Rapid Capacity Expansion & Market Position

Increased crushing capacity from 180 TPD in 2018 to 750 TPD by 2024—marking rapid growth and scale in the industry.

3. Experienced Promoters & Prudent Financials
   • Promoters have decades of entrepreneurial background and strong execution capability.
   • Rated CRISIL BBB+/Stable, citing prudent working capital management, ramp-up of operations, and promoter support as strengths.
   • Earlier Infomerics observations highlighted location advantage, reputable customer base, and improved financial profile post-capex.

Risks

1. Raw Material Price Volatility & Competitive Pressure
   • Profit margins remain sensitive to maize price fluctuations and agro-climatic dependencies.
   • Faces stiff competition from established players and smaller regional mills, which may limit pricing power.
2. Operational Concentration & Customer/Vendor Dependence
   • The manufacturing setup is largely centralized (single facility), making it operationally vulnerable.
   • High reliance on a small group of key customers and top maize suppliers, potentially impacting revenue continuity if relationships shift.
3. Legal Exposure

One of the promoters, Anil Kishorepuria, is subject to an ongoing legal proceeding under IPC and the Prevention of Corruption Act. Any adverse outcomes could materially affect business reputation and stability

Financial Performance Overview (₹ in Crore)

Revenue

• FY 2023: ₹487.95 cr → FY 2024: ₹600.02 cr → FY 2025: ₹915.16 cr
• Shows strong year-on-year growth — ~23% growth in FY 2024 and ~52% in FY 2025, indicating rapid business expansion.

Profit

• FY 2023: ₹16.76 cr → FY 2024: ₹22.14 cr → FY 2025: ₹47.67 cr
• Profit nearly doubled in FY 2025 compared to FY 2024, showing improved operational efficiency and cost control.

Assets

• FY 2023: ₹371.52 cr → FY 2024: ₹585.97 cr → FY 2025: ₹860.26 cr
• Significant asset growth suggests heavy investment in capacity and infrastructure to support future growth.

✅ Pros

1. Strategically located near major maize-producing regions, reducing raw material costs.
2. Rapid capacity expansion from 180 TPD in 2018 to 750 TPD in 2024.
3. Diverse product portfolio serving multiple industries and export markets.
4. Modern, ISO-certified facility with zero-liquid discharge and captive power.
5. Strong financial growth in revenue and profit over the last three years.
6. Experienced promoters with industry and business expertise.
7. Rated CRISIL BBB+/Stable, reflecting moderate credit strength.

❌ Cons

1. High dependence on maize, making margins vulnerable to price and climate fluctuations.
2. Single manufacturing facility creates operational concentration risk.
3. Significant reliance on a few key customers and suppliers.
4. Competitive market with both organized and unorganized players.
5. Legal case pending against a promoter, which could impact reputation.
6. Large capacity expansion may require continued high working capital.
7. Agro-processing sector exposed to government policy and export regulation changes.