Kolkata’s Regaal Resources Plans ₹430 Crore Expansion In Bihar, ₹210 Crore IPO Opens August 12

Kolkata: Regaal Resources Ltd, one of India's largest maize-based specialty product manufacturers, is doubling production capacity at its Bihar plant with an investment of Rs 430 crore, a top company official said.

To support the expansion and debt repayment, the Kolkata-headquartered company will launch its Rs 210-crore initial public offering (IPO) on August 12, which will close on August 14.

The Kishanganj-based facility, which has a current capacity of 825 tonnes per day (TPD), will be expanded to 1,650 TPD. It is expected to be operational in the March quarter of the current fiscal.

"About Rs 314 crore of the investment will be capitalised in the fourth quarter of the 2025-26 fiscal and another Rs 116 crore in the first quarter of FY'27. The expansion is being funded through a mix of debt and internal accruals," Chairman and Managing Director Anil Kishorepuria told reporters.

The project qualifies for Bihar government's State Investment Promotion subsidy, structured as two separate phases to secure up to Rs 40 crore in interest subsidies.

As of March 2025, the company's total debt stood at around Rs 570 crore. However, post expansion, the projected debt is likely to stay similar, and repayment expected to accelerate from April 2026 onwards as increased capacity boosts turnover and profitability, Kishorepuria said.

Regaal Resources also plans to expand its product basket from the current 10-11 to include four new derivatives and a full range of modified starches. It is working to deepen the white-label manufacturing business for Pune-based confectionery maker Wakefield, and intends to expand sales to South India and export markets with value-added products.

The IPO comprises a fresh issue of up to Rs 210 crore and an offer for sale of 94.12 lakh equity shares by the promoters and promoter group. The price band has been fixed at Rs 96-102 per share of face value Rs 5 each. Post-issue, the promoters' stake will reduce to about 71 per cent from 100 per cent. Investors can bid for a minimum of 144 shares and in multiples thereafter.

Of the fresh issue proceeds, Rs 159 crore will go towards repayment or pre-payment of certain borrowings, the company said.

Regaal Resources operates a zero liquid discharge maize milling facility catering to customers in food products, paper, animal feed and adhesives across India, and in export markets such as Nepal and Bangladesh.

The company reported a 52.5-per cent jump in revenue to Rs 915.16 crore in FY'25 from Rs 600.02 crore in FY'24, while profit after tax more than doubled to Rs 47.67 crore from Rs 22.14 crore.

However, it has reported negative cash flow in the past two fiscals, which the management attributed to large raw material procurement in the initial months of the year to meet annual requirements, tying up working capital.

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