TruAlt Bioenergy IPO sees nearly 72x subscription on Day 3; check latest GMP

TruAlt Bioenergy IPO sails through on Day 3; check latest GMP

The initial share sale of biofuels producer TruAlt Bioenergy Ltd got subscribed nearly 72 times on the third day of offering on September 29

The initial public offer (IPO) received bids for 88,85,42,520 shares against 1,23,55,424 shares on offer, according to NSE data.

The qualified institutional buyers' category got subscribed 159 times, while the portion for non-institutional investors received 98.5 times subscription. Retail Individual Investors (RIIs) quota got subscribed 11 times.

TruAlt Bioenergy Ltd on Wednesday said it has collected Rs 252 crore from anchor investors.

The IPO, with a price band of Rs 472-496 per share, will conclude on September 29.

TruAlt's IPO is a combination of a fresh issue of shares worth Rs 750 crore and an offer-for-sale (OFS) of 18 lakh shares valued at Rs 89.28 crore at the upper end, by promoters. This aggregates the total issue size to Rs 839.28 crore.

Funds raised through the fresh issuance will be earmarked for setting up multi-feed stock operations, payment of debt and general corporate purposes.

Bengaluru-based TruAlt Bioenergy is among the leading biofuels producers and is primarily in the production of ethanol. The company is diversifying into new areas like second-generation (2G) ethanol, utilising surplus bagasse -- a byproduct of sugar production -- as a raw material.

TruAlt's business performance is heavily influenced by the price and availability of raw materials like sugar syrup and molasses. To reduce reliance on these seasonal resources, the company plans to shift its focus towards producing grain-based ethanol.

This strategic move is expected to help control material costs, optimise revenue, and maintain consistent ethanol production.

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

TruAlt Bioenergy GMP

According to InvestorGain, the Grey Market Potential (GMP) of TruAlt Bioenergy stood at Rs 110 as of September 29, 5 pm. The estimated listing price is expected to be Rs 606 based on the upper price band of Rs 496. The expected percentage gain per share is 22.18%.