Trualt Bioenergy IPO Debuts Strong: Share Price Opens 10-11 Per Cent Higher

Trualt Bioenergy made a strong debut on the stock exchanges today. On the NSE, the share price opened at Rs 545.40 per share, 10 per cent higher than the issue price of Rs 496. On the BSE, Trualt Bioenergy shares opened at Rs 550 apiece, up 11 per cent from the issue price.

The initial public offering (IPO) of Trualt Bioenergy was open for subscription from Thursday, September 25, to Monday, September 29. With a face value of Rs 10, the shares were priced in the range of Rs 472 to Rs 496. A minimum of 30 shares were available for bid, with multiples of these shares offered. The IPO saw overwhelming demand, following a 71.92 times subscription between September 25-29 in the primary market.

Headquartered in Bengaluru, Trualt Bioenergy is a leading biofuels producer, focusing primarily on ethanol production. The company is expanding into second-generation (2G) ethanol, leveraging surplus bagasse—a byproduct of sugar manufacturing—as raw material. The company’s performance is influenced by the availability and pricing of key inputs like sugar syrup and molasses. To reduce Reliance on seasonal raw materials, Trualt Bioenergy is also increasing grain-based ethanol production for a more stable supply chain.

The Trualt Bioenergy IPO consists of a new share issuance worth Rs 750 crore and an offer-for-sale (OFS) of 18 lakh shares, amounting to Rs 89.28 crore from promoters. This brings the total IPO size to Rs 839.38 crore.

Trualt Bioenergy plans to utilise the net proceeds from its IPO for multiple purposes. The company aims to fund capital expenditure of Rs 150.68 crore to set up multi-feed stock operations, enabling the use of grains as an additional raw material at its ethanol plant in TBL Unit 4 with a 300 KLPD capacity. Additionally, Rs 425 crore is earmarked for meeting working capital requirements, while Rs 81.36 crore will be allocated for general corporate purposes.

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

Disclaimer: The article is for informational purposes only and not investment advice.