Regaal Resources is one of the largest manufacturers of maize-based specialty products in India with a total installed crushing capacity of 750 tonnes per day (TPD). The company manufactures native maize starch and modified starch, which are plant-based natural starches derived from maize. Its product portfolio also includes co-products such as gluten, germ, enriched fiber, and fiber. In addition, it produces value-added, food-grade starches, including maize flour, icing sugar, custard powder, and baking powder.

The company began operations in 2018 with an installed capacity of 180 TPD and has consistently expanded its operations through multiple capacity enhancements. In fiscal 2025, it further increased capacity with the installation of a starch dryer, bringing its installed crushing capacity to 750 TPD as of May 31, 2025. Its manufacturing facility is equipped with extensive warehousing and four humidity-controlled silos, each with a capacity of 10,000 MT, providing a total maize storage capacity of 65,000 tonnes. The manufacturing facility also has a total installed co-generation power plant of 7.1 MW which allows it to be self-sufficient to a large extent for its power needs

The company has made an application before the Bihar State Pollution Control Board to increase its installed capacity from 750 TPD to 1,650 TPD. The company proposes to increase the capacity of the manufacturing facility to capitalise on anticipated growth in its end-user industries.

The company's zero liquid discharge (ZLD) maize milling facility, spread across 54.03 acres, is located in Kishanganj, Bihar. The location has been strategically chosen, as Bihar is one of India's major maize cultivation hubs. Notably, the company is the first maize milling enterprise to set up operations in Kishanganj district, a prime maize catchment area that experiences bumper harvests during the Rabi season. Maize production in the district rose significantly from 91,680 tonne in fiscal 2023 to 417,511 tonne in fiscal 2024, ensuring a steady and reliable supply during the season. The facility's location also offers strong market proximity, with easy access to key domestic markets in East and North India, as well as major export destinations. The Nepal border lies just 24 km away and the Bangladesh border 235 km by road, providing a logistical advantage for international sales.

The company extensive product portfolio includes native maize starch, which is widely used across food and beverage, pharmaceutical, paper and packaging, textile, adhesive, industrial, and cosmetic industries. They also offer modified maize starches such as yellow dextrin, white dextrin, and oxidized starch, which primarily serve applications in adhesives, textiles, paper coatings, and other specialized industrial processes. Additionally, Regaal Resources manufactures co-products like gluten, germ, enriched fiber, maize steep liquor, and maize fiber, largely utilized in animal feed, ethanol production, sweeteners, and oil extraction industries. The company further adds value through products like corn flour, custard powder, baking powder, and icing sugar, which find broad use in food processing and confectionery.

Regaal Resources generates most of its revenue from the domestic market, with domestic sales accounting for approximately Rs 840.27 crore, which is about 92.8% of its total revenue in FY 2025. Export revenue stands at around Rs 65.48 crore, making up 7.2% of the total revenue. Key export markets include neighbouring countries such as Bangladesh, Nepal, and Malaysia.

Regaal Resources revenue is predominantly driven by native maize starch, which accounted for Rs 536.98 crore or 59.3% of the total revenue. Co-products contributed significantly as well, bringing in Rs 197.35 crore, equivalent to 21.8% of the revenue, followed by traded maize (others) at Rs 152.55 crore or 16.8%. Value-added products and modified starch represented smaller portions of the revenue, with Rs 14.36 crore (1.6%) and Rs 4.51 crore (0.5%) respectively.

The company serve a diverse base of domestic and international customers spanning industries such as food products, paper, animal feed, and adhesives. Its business model is designed to address three broad customer segments: (i) manufacturers of end products, (ii) manufacturers of intermediate products, and (iii) distributors and wholesale traders. Over the years, it has built relationships with several prominent clients, including Emami Paper Mills, Manioca Food Products, Century Pulp & Paper, Kush Proteins, Shri Guru Oil Industries, Mayank Cattle Food, Aarnav Sales Corporation, AMV Sales Corporation, Eco Tech Papers, Genus Paper, Krishna Tissues, Maruti Papers, and M/s Vasu and Sons.

The company sources maize directly from the cultivators, through aggregators, with whom it has long-standing relationships and from traders in Bihar and West Bengal amongst other sources. It is the only maize milling plant in Bihar which gives it a significant competitive advantage.

Promoters of the company are Anil Kishorepuria, Shruti Kishorepuria, Karan Kishorepuria and BFL Private Limited.

The Offer and the Objects

The offer comprises of fresh issue of up to 20588235 equity shares at the upper price band of Rs 102 and 21875000 equity shares at the lower price band of Rs 96 aggregating Rs 210 crore and an offer for sale up to 9412000 equity shares aggregating Rs 96 crore at the upper price band of Rs 102 and Rs 90 crore at the lower price band of Rs 96.

The company proposes to utilize the net proceeds from the issue towards repayment and/ or pre-payment, in full or in part, of its certain outstanding borrowings availed by the company amounting Rs 159 crore and the balance towards general corporate purposes. As of June 30, 2025, total outstanding indebtedness was Rs 561.153

crore.

Promoter Anil Kishorepuria post offer shareholding will decrease to 24.5% from pre offer shareholding of 34.4% while promoter Shruti Kishorepuria post offer shareholding will decrease to 27.5% from pre offer shareholding of 37.1%, promoter BFL Private Limited post offer shareholding will decrease to 11.8% from pre offer shareholding of 17.9% and promoter group SRM Private Limited post offer shareholding will decrease to 5.5% from pre offer shareholding of 8.8%

Strengths

The company is strategically located in the heart of one of India's largest maize growing hubs i.e. in Kishanganj district in Bihar, which is one of the top 3 maize cultivating states in India.

Regaal Resources is the only company with maize milling plant in Bihar, which gives it a significant competitive advantage. Further, establishing direct relation with farmers ensures smooth supply of raw material and this direct procurement strategy also aids in lowering procurement cost and getting access to good quality material.

The company's manufacturing facility is one of the few maize wet milling facilities in India with a ZLD unit. ZLD systems prevent liquid waste from contaminating water sources. Further, the company recycles water through its effluent treatment facility, ZLD unit, and reverse osmosis facility. Additionally, the company's manufacturing facility is accredited with ISO 9001:2015 (Quality Management System), ISO 14001:2015 (Environmental Management Systems), ISO 22000: 2018 (Food Safety Management System), ISO 45001:2018 (Operational Health and Safety Management) and is HALAL certified.

The company manufacturing facility has efficient utilization of the entire maize kernel, leading to a diversified product portfolio including native maize starch, modified starches, co-products, and value-added food-grade products that cater to multiple industries such as food, pharmaceuticals, paper, adhesives, textiles, and animal feed.

The company receives 100% interest subsidy (up to Rs 20 crore and interest capping of 10% on every subsequent expansion and 100% exemption on State GST by the Bihar government. Also, Bihar's labour rate is one of the lowest in country

The global Native Maize Starch market is projected to register a growth of CAGR 3.65% during 2024-2029. The Global Native Maize Starch market was valued at US$ 30,818 Million in 2024 and is expected to reach US$ 36,874 million by 2029. In volume terms, the Global Native Maize Starch market was 62.50 million tonne in 2024. It is expected to reach 74.20 million tonne in 2029.

India's macro tailwinds such as high population, young demographic, urbanisation nuclearisation of families, rising disposable incomes and shifting consumption towards health and convenience offer growth opportunities for the maize starch market

Weaknesses

Operations of the company are susceptible to the inherent risks associated with agriculture-based commodity business, such as availability of raw materials, fluctuation in prices, and changes in government regulations. Cost of maize forms about 70% of the operating income. When the price of maize falls significantly, the government implements minimum support prices at which maize should be sold in the market to protect farmers' interests. This impacts the cost of procurement of maize.

The bargaining power of the company is limited as majority of the clients are large fast-moving consumer goods and pharmaceutical companies. Furthermore, though the industry is highly consolidated in terms of catering to such customers, significant competition exists among the top 5-6 players.

One of the promoters, Anil Kishorepuria, is a party to a legal proceeding for alleged violation of Indian Penal Code and the Prevention of Corruption Act, 1988. Any adverse order in this proceeding could have a material impact on our reputation and business operations

One of the promoters, i.e., Anil Kishorepuria, and certain members of its promoter group were restrained from associating with capital market related activities in the past.

Purchase of maize from its top 10 vendors constituted more than 94% of its total cost of purchase of maize, in FY2025. Any loss of such vendors/suppliers or any increase in the price could have adverse impact on its business and its revenue. Also Top 10 customers form 45.46% of total sales in FY2025.

The manufacturing operations are exposed to operating risks such as failure of equipment, power supply interruptions, labour disputes, natural disasters and industrial accidents

The company has incurred negative net cash flows from operating activities in the past.

The company operations are subject to health, safety, and environmental laws and generate significant waste, including hazardous materials. Compliance and remediation requirements could substantially increase its capital and operating costs.

Valuation

For FY2025, sales were up by 53% to Rs 915.16 crore. The OPM rose290 bps to 12.3% which led to 100% increase in operating profit to Rs 112.79 crore. Other income rose129% to Rs 2.42 crore and interest cost increased 92% to Rs 37.35 crore while depreciation increased 59% to Rs 14.06 crore. PBT increased 119% to Rs 63.8 crore. Tax expenses were 131% higher at Rs 16.13 crore. Net profit increased 115% to Rs 47.67 crore.

FY2025 EPS on post-issue equity works out to Rs 4.6. At the upper price band of Rs 102, P/E works out to be 22

Total outstanding borrowings amounted to Rs 561.15 crore as at June 30, 2025. As much as 28.3% of the debt will be repaid from the issue proceeds, bringing down interest costs substantially and boosting profit. The EPS works out to Rs 5.7 if 28.3% of its interest cost is removed, keeping all other items, including tax rate, same. The re-worked P/E at the upper price band moderates to 18.

As of 11 August 2025, its listed peers Sanstartraded at FY2025 P/E of 22,Gujarat Ambuja exports at FY2025 PE of 19, Gulshan Polyols at 44, and Sukhjit Starch and Chemicals at 13.

For FY2025, Regaal Resources'Ebitda margin and ROE stood at 12.3% and 20.3% compared to 5.9% and 7% for Sanstar, 8.7% and 8.3% for Gujarat Ambuja Exports, 4.7% and 4% for Gulshan Polyols and 7.5% and 7.4% for Sukhjit Starch and Chemicals,respectively.

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