Bengaluru-based TruAlt Bioenergy Ltd, one of India’s leading biofuels producers primarily engaged in ethanol production, has seen a strong response to its initial public offering (IPO). On the third day of the subscription, September 29, the IPO received 713% subscription, highlighting investor interest.

Subscription Details

According to NSE data, bids were received for 8,81,33,070 shares against 1,23,55,424 shares on offer. The IPO’s response across different investor categories was as follows:

Qualified Institutional Buyers (QIBs): 108% subscription
Non-Institutional Investors (NIIs): 22.75 times subscription
Retail Individual Investors (RIIs): 3.87 times subscription

The strong demand reflects the market’s positive sentiment toward biofuels and ethanol producers.

Also Read: Tata Capital Trims Valuation to $15.7 Billion Ahead of IPO Launch

Anchor Investor Participation

TruAlt Bioenergy confirmed that it has collected Rs 252 crore from anchor investors. These funds are crucial for building confidence ahead of the IPO’s conclusion.

IPO Price Band and Issue Size

The IPO has a price band of Rs 472–496 per share and will conclude on September 29.

The offering is a combination of:

Fresh Issue: Rs 750 crore
Offer for Sale (OFS): 18 lakh shares by promoters valued at Rs 89.28 crore at the upper end

This brings the total issue size to Rs 839.28 crore.

Purpose of Funds

Proceeds from the fresh issue will be utilized for:

Setting up multi-feed stock operations
Repayment of debt
General corporate purposes

These allocations are aimed at supporting TruAlt’s growth and operational expansion in ethanol production.

Company Profile and Operations

TruAlt Bioenergy is primarily engaged in ethanol production and is considered a leading biofuels producer in India. The company is expanding into second-generation (2G) ethanol, using surplus bagasse—a byproduct of sugar production—as raw material.

Currently, TruAlt’s business performance is heavily influenced by the price and availability of raw materials such as sugar syrup and molasses. To reduce dependence on these seasonal resources, the company plans to shift focus toward grain-based ethanol production.

This strategic approach is expected to:

Control material costs
Optimize revenue
Maintain consistent ethanol production throughout the year

IPO Management

The IPO is being managed by DAM Capital Advisors and SBI Capital Markets, who are acting as book-running lead managers. Their role includes coordinating the issue, managing subscriptions, and ensuring regulatory compliance.

Grey Market Performance

According to InvestorGain, the Grey Market Potential (GMP) of TruAlt Bioenergy stood at Rs 109 as of September 29, 12:15 pm.

Based on the upper price band of Rs 496, the estimated listing price indicates an expected gain of 21.98% per share for investors entering at the IPO price. This reflects positive market sentiment and expectations for strong listing performance.

Key Figures at a Glance

IPO Subscription (Day 3): 713%
Bids Received: 8,81,33,070 shares
Shares on Offer: 1,23,55,424 shares
QIB Subscription: 108%
NII Subscription: 22.75 times
RII Subscription: 3.87 times
Anchor Investors Contribution: Rs 252 crore
Price Band: Rs 472–496 per share
Fresh Issue Size: Rs 750 crore
OFS Size: Rs 89.28 crore
Total Issue Size: Rs 839.28 crore
GMP: Rs 109
Expected Listing Gain: 21.98%

Market Implications

The strong subscription across investor categories indicates robust confidence in TruAlt Bioenergy’s growth prospects. The high NII subscription, in particular, shows that large investors see value in the IPO.

Participation from anchor investors like LIC and other institutional players also adds credibility, ensuring a smoother listing process.

Outlook Post-IPO

With funds raised earmarked for expanding multi-feed stock operations and shifting toward grain-based ethanol production, TruAlt Bioenergy is well-positioned to improve operational efficiency and reduce raw material dependency.

The IPO’s completion on September 29 will finalize allocations, after which market attention will shift to the company’s performance and listing day gains, especially given the GMP indicator of Rs 109 per share.

The combination of strong subscription numbers, anchor investor backing, and strategic expansion plans is likely to make TruAlt Bioenergy’s IPO a benchmark for biofuel companies in India.

Conclusion

TruAlt Bioenergy’s IPO has sailed through Day 3 with 713% subscription, reflecting strong investor confidence. With a total issue size of Rs 839.28 crore, a price band of Rs 472–496, and expected listing gains of nearly 22%, the IPO has captured market attention.

As the company diversifies into 2G ethanol and plans grain-based ethanol production, the raised funds will play a key role in supporting growth, reducing raw material reliance, and enhancing production efficiency.

The IPO’s conclusion on September 29 will mark a significant milestone for TruAlt Bioenergy, with market participants watching closely for listing performance and early investor returns.