Regaal Resources IPO: GMP falls amid high demand, allotment date & odds of getting shares

Regaal Resources IPO, which saw a bumper response during its bidding period between August 12-14, shall be finalizing its basis of allotment on Monday, August 18 and the investors shall be getting the update, in form of debit of funds or revocation of mandate, by Tuesday August 19.

Regaal Resources IPO, which had garnered substantial interest, boasting a strong response from investors. The IPO was held between August 12 and August 14, offering shares in a fixed price band of Rs 96-102, with a lot size of 144 shares. It received over 35.65 lakh applications, leading to bids worth Rs 34,250 crore, excluding the Rs 91.80 crore anchor book.

The issue was oversubscribed 159.88 times, reflecting significant interest from investors. The odds of share allotment are particularly slim, especially for high-net-worth individuals (HNIs), who have the least probability of receiving shares. The company’s shares are expected to be listed on both BSE and NSE, with August 18 as the likely listing date.

The IPO saw robust demand across all investor categories. Qualified institutional buyers (QIBs) had their portion oversubscribed 190.97 times, gathering bids of Rs 11,687.05 crore. Non-institutional investors (NIIs) oversubscribed their portion 356.73 times, amounting to Rs 16,373.48 crore in bids. Retail investors, too, showed strong interest, oversubscribing their portion 57.75 times with bids of Rs 6,184.67 crore.

This positions Regaal Resources as the 14th biggest IPO by application volume in India, exceeding notable multibagger issues like Rolex Rings. The tentative allotment matrix indicates that big HNI investors have a 1.31% chance of receiving 2,016 shares, while small HNI investors have a 0.35% probability. Retail investors have a slightly better chance of 2.27% to obtain 144 shares.

Despite a decline in the grey market premium (GMP), Regaal Resources is still anticipated to have a strong listing. The GMP recently dropped from Rs 34-35 to Rs 24-25, signalling a potential listing gain of 24% for investors. While GMP often fluctuates, this suggests resilience in market sentiment despite the dip.

Brokerage houses have generally provided a favourable outlook on the IPO, recommending subscriptions based on the company’s growth potential and market positioning. Pantomath Capital Advisors and Sumedha Fiscal Services are the lead managers for this IPO, with MUFG Intime India as the registrar. Shares are expected to be credited to demat accounts shortly after the allotment is announced.