TruAlt Bioenergy sets price band for Rs 839-crore IPO at Rs 472-496 per share

TruAlt Bioenergy IPO News

Biofuels producer TruAlt Bioenergy on September 22 fixed a price band of Rs 472 to Rs 496 per share for its upcoming Rs 839-crore initial public offering (IPO).

The company's maiden share sale will open for subscription on September 25 and conclude on September 29, according to a public announcement.

TruAlt's IPO is a combination of a fresh issue of shares worth Rs 750 crore and 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 839.38 crore.

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

Based in Bengaluru, TruAlt Bioenergy is among the leading biofuels producers, 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.

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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.

In terms of issue allocation, 50 percent of the IPO is reserved for qualified institutional buyers (QIBs), 35 percent for retail investors, and the remaining 15 percent for non-institutional investors. The minimum lot size for application is 30 shares and in multiples thereafter.

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