TruAlt Bioenergy Ltd, a producer of biofuels, will open its initial public offering for subscriptions from September 25 until September 29. TruAlt Bioenergy IPO price band has been set between ₹472 and ₹496 per share.
TruAlt Bioenergy IPO GMP today is ₹80. This indicates TruAlt Bioenergy share price were trading at a premium of ₹80 in the grey market on Thursday, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of TruAlt Bioenergy share price was indicated at ₹576 apiece, which is 16.13% higher than the IPO price of ₹496.
According to the activities in the grey market over the past six sessions, today’s IPO GMP is trending upward and is anticipated to have a robust listing. The minimum GMP recorded is ₹0.00, while the maximum GMP stands at ₹80, as per expert analysis.
Ahead of its public subscription opening, TruAlt Bioenergy secured ₹252 crore from anchor investors a day prior to the IPO launch. Among the anchor investors listed in a circular on the BSE website are Tata Mutual Fund, HDFC Mutual Fund, Bandhan Mutual Fund, SBI General Insurance Company, Societe Generale, and Citigroup Global Markets Mauritius. The biofuels producer issued 50.76 lakh equity shares to 19 different funds at a price of ₹496 per share, as mentioned.
TruAlt Bioenergy, based in Bengaluru, stands out as a prominent biofuels producer, focusing mainly on ethanol production. The company is branching out into new sectors, such as second-generation (2G) ethanol, by utilizing surplus bagasse, which is a byproduct from sugar manufacturing, as a raw material.
The business outcomes for TruAlt are significantly shaped by the availability and pricing of raw materials, including sugar syrup and molasses. To lessen dependence on these seasonal inputs, the company is aiming to prioritize the production of grain-based ethanol.
TruAlt Bioenergy IPO details
TruAlt Bioenergy IPO consists of a new share issuance totaling ₹750 crore and an offer-for-sale (OFS) of 18 lakh shares priced at ₹89.28 crore at the maximum limit, provided by the promoters. This brings the overall size of the issue to ₹839.38 crore.
The proceeds from the new issuance will be allocated for establishing multi-feed stock operations, settling debt, and general corporate activities.
The book-running lead managers for the public offering are DAM Capital Advisors and SBI Capital Markets.
TruAlt Bioenergy IPO Review
Harshal Dasani, Business Head at INVAsset PMS, states that at the highest price range, the IPO is priced at approximately 23–24 times the FY25 earnings and 2.2 times sales, which is reasonable in comparison to specialty processors, yet higher than commodity sugar peers. Immediate gains upon listing will depend on subscription interest and market sentiment in the sector, but long-term investors might be reassured by TruAlt’s scale, supportive policies, and consistent deleveraging. Maintaining margins above 16% and further reducing leverage will be crucial for a revaluation.
TruAlt Bioenergy IPO subscription status
Subscription for the public issue will open at 10:00 IST during Thursday’s deals.
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