Bengaluru-based biofuels company TruAlt Bioenergy Ltd has launched its initial public offering (IPO), which will remain open for subscription from September 25 to September 29. The price band for the issue has been fixed between ₹472 and ₹496 per share.
Grey Market Premium (GMP)
According to market observers, the grey market premium (GMP) for TruAlt Bioenergy shares stood at ₹80 on Thursday. Based on the upper price band of ₹496, this implies a likely listing price of around ₹576 per share, representing a potential 16.13% premium over the issue price. Analysts note that the GMP has shown an upward trend in the last few sessions, with the highest premium recorded at ₹80.
Anchor Investment
Ahead of the IPO launch, the company successfully raised ₹252 crore from anchor investors. As per the circular filed with BSE, key participants included Tata Mutual Fund, HDFC Mutual Fund, Bandhan Mutual Fund, SBI General Insurance, Societe Generale, and Citigroup Global Markets Mauritius. TruAlt allotted 50.76 lakh shares at ₹496 apiece to a group of 19 anchor investors.
Business Overview
TruAlt Bioenergy is one of India’s notable producers of ethanol and other biofuels. The company is expanding into second-generation (2G) ethanol, making use of surplus bagasse — a sugar industry byproduct. While it currently depends heavily on molasses and sugar syrup, TruAlt is increasing its focus on grain-based ethanol to reduce exposure to seasonal fluctuations in raw materials.
IPO Structure
The public issue comprises a fresh equity issue worth ₹750 crore and an offer-for-sale (OFS) of 18 lakh shares valued at ₹89.28 crore at the upper price limit. In total, the IPO size amounts to ₹839.38 crore. Funds raised will go towards multi-feed stock operations, debt repayment, and general corporate purposes. The issue is being managed by DAM Capital Advisors and SBI Capital Markets.
Market View
According to Harshal Dasani, Business Head at INVAsset PMS, the IPO valuation at the upper band works out to around 23–24 times FY25 earnings and 2.2 times sales. He noted that while the valuation is more expensive than sugar peers, it remains fair compared to specialty processors. “Short-term gains will depend on demand and market sentiment, but long-term investors may benefit from TruAlt’s scale, supportive ethanol policies, and consistent debt reduction,” he said.
Subscription Status
On the first day of bidding, the IPO was subscribed 4% overall. The retail quota saw 5% subscription, while Non-Institutional Investors (NIIs) also subscribed 5%. The Qualified Institutional Buyers (QIBs) portion was yet to see participation as of 10:36 AM, according to BSE data. In total, the issue received 4,48,350 bids against 1,23,55,424 shares on offer.
