Regaal Resources IPO: The initial public offering (IPO) of Regaal Resources sailed through on the first day of the bidding process on Tuesday, August 12, amid solid demand from all categories of investors, positive brokerage views and a robust grey market premium (GMP).
Investors can apply for the mainboard IPO till Thursday, August 14.
Regaal Resources IPO Subscription Status
Regaal Resources IPO was booked 5.94 times at the end of the first day of the bidding process today. The retail portion of the IPO was subscribed 5.58 times, the non-institutional investor (NII) portion was booked 10.77 times, while the qualified institutional buyer (QIB) portion garnered 2.94 times bids.
Overall, Regaal Resources IPO received bids for 12,47,21,568 shares as against 2,09,99,664 shares on offer.
Regaal Resources IPO GMP
Regaal Resources IPO GMP stood at ₹25 apiece on Tuesday. This means shares of Regaal Resources are trading ₹25 higher than the IPO price in the grey market.
At the prevailing GMP and issue price, Regaal Resources IPO listing price could be ₹127, a premium of 24.51%. However, investors must not base their decisions solely on the GMP and consider other aspects like the fundamentals of a company and their own risk appetite.
Regaal Resources IPO Details
Regaal Resources IPO, worth ₹ ₹306 crore, is a combination of a fresh issue of ₹210 crore and an offer for sale (OFS) of ₹96.00 crore.
Regaal Resources IPO price band has been set at ₹96 to ₹102 per share. Investors can apply for a minimum of 144 shares in one lot, requiring an investment of at least ₹13,824.
The company plans to use the funds raised for repayment and/or pre-payment, in full or in part, of certain outstanding borrowings availed by the company and for general corporate purposes.
A majority of the brokerages have subscribe for long term rating on the company.
“On the valuation front, based on annualised FY25 earnings, the company is seeking a P/E of 21.9 times, and a post-issue market capitalisation of approximately ₹10,477 million, making the issue appear fully priced. We believe it has a capital-intensive nature of operations, exposure to Agri cycles, and limited pricing power in a commoditised market. However, its strategic location, diversified customer base, and expanding footprint support long-term scalability. Thus, we assign SUBSCRIBE for LONG TERM rating for this issue,” brokerage Anand Rathi said.
Many others, like Lakshmishree Investment, BNL Securities and Reliance Securities had ‘subscribe’ ratings on the Regaal Resources IPO.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
