TruAlt Bioenergy IPO Opens: Rs 839 Crore Issue Attracts Early Interest

Market Performance:

TruAlt Bioenergy’s initial public offering (IPO) kicked off on September 25, aiming to raise Rs 839 crore. Within the first hour, the IPO saw 6% subscription, signaling early investor interest in the ethanol producer. Retail investors have claimed 8% of their allocated portion, while non-institutional investors (NII) have subscribed 7%. Qualified Institutional Buyers (QIBs) are yet to participate substantially.

IPO Details and Structure:

The IPO comprises two components:

• Fresh Issue: Rs 750 crore worth of new shares.
• Offer for Sale (OFS): 18 lakh shares by existing promoters, valued at Rs 89.28 crore at the upper price band.

The IPO carries a price band of Rs 472–496 per share. Investors must apply for at least 30 shares, totaling Rs 14,880 at the upper limit. The issue remains open until September 29, with share allotments expected on September 30 and listing scheduled for October 3.

Issue Allocation:

• Qualified Institutional Buyers (QIBs): 50%
• Retail Individual Investors: 35%
• Non-Institutional Investors (NII): 15%

DAM Capital Advisors and SBI Capital Markets are serving as the book-running lead managers for the IPO.

Use of Proceeds:

TruAlt Bioenergy has outlined the allocation of fresh issue funds as follows:

• Rs 150.68 crore for setting up multi-feed stock operations.
• Rs 425 crore for working capital requirements.
• Remaining funds for general corporate purposes.

Company Overview:

Bengaluru-based TruAlt Bioenergy is a leading biofuels producer with an installed ethanol production capacity of 2,000 kilo litres per day. The company is expanding into multi-feedstock ethanol production to diversify from sugarcane and molasses, ensuring more stable raw material sourcing and consistent production levels.

Anchor Book Subscription:

A day before the public opening, TruAlt Bioenergy raised Rs 252 crore from anchor investors. Major participants included Tata Mutual Fund, HDFC Mutual Fund, Bandhan Mutual Fund, SBI General Insurance Company, Societe Generale, and Citigroup Global Markets Mauritius.

Summary:

TruAlt Bioenergy’s IPO marks a significant step in scaling its ethanol production capabilities. With Rs 839 crore on offer, the company aims to expand multi-feedstock operations and strengthen working capital. Early subscription trends indicate growing interest from retail and non-institutional investors, while anchor investor support underscores confidence in the company’s growth trajectory.