Regaal Resources shares settled at Rs 131.9 per share on the NSE on its debut day, higher by 29.31 percent from its IPO price. However, the stock was down 6.45 percent from it's open price.
The shares listed with a strong premium on the stock exchanges over it's IPO price on August 20, following a huge subscription of 159.88 times to it's Rs 306-crore issue in the primary market.
Shares of Regaal Resources listed at Rs 141 per share on the NSE, a healthy premium of 38.24 percent over it's issue price. Regaal Resources Ltd, a maize-based speciality product manufacturer, had set a price band of Rs 96 - 102 for its issue.
On the BSE, the shares were listed at Rs 141.80 apiece, a premium of 39 percent. The company's market capitalization post listing of shares stood at Rs 1,456.62 crore.
Regaal Resources share listing was better than the expectations in the grey market, which had expected a premium listing of around 30 percent.
The company had mobilised around Rs 92 crore from anchor investors.
Regaal Resources shares list on exchanges: Should you buy, sell or hold?
Narendra Solanki, Head – Fundamental Research, Investment Services, Anand Rathi Shares and Stock Brokers, said Regaal Resources is among the largest maize-based speciality product makers in India with an installed crushing capacity of 750 tonnes per day. Its zero liquid discharge facility in Kishanganj, Bihar, spans 54 acres.
"Operations are capital intensive and subject to agri cycles with limited pricing power. However, its location, customer base and expansion support long-term scalability. Investors may hold the issue for the long term post listing,” Solanki added.
Regaal Resources shares: Experts recommend post-listing strategy
Of the fresh issue proceeds, Rs 159 crore will go towards repayment or pre-payment of certain borrowings.
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.
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