Regaal Resources Plunges 5% After Explosive 39% Premium Debut—What’s Next?

Regaal Resources just pulled off a classic Wall Street magic trick—stunning debut followed by immediate reality check.

The Hype Meets the Tape

Traders watched shares crater 5% right out the gate after that jaw-dropping 39% first-day pop. Everyone piled in during the initial frenzy—then the smart money started dumping.

Gravity Always Wins

That premium pricing looked great on paper until actual market forces took over. No earnings report, no operational milestones—just pure momentum speculation getting crushed by sell orders.

Another reminder that IPO premiums often mean 'Immediate Profit Offloading' for insiders while retail bags the difference. Some things never change—even when the ticker does.

Strong demand

The ₹306-crore IPO was subscribed 159.88 times on the final day. The bids were led by institutional investors (190.97 times), retail investors (57.75 times), non-institutional investors (356.73 times). The company mobilised ₹92 crore from anchor investors.

The ₹306-crore was a combination of fresh issue of shares worth ₹210 crore and an offer-for-sale of 94.12 lakh shares valued at ₹96 crore by promoters, at the upper end of the price band. The price band was fixed at ₹96-102 per share.

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

The company manufactures maize specialty products in India, with a crushing capacity of 750 tonne per day.

Published on August 20, 2025