TruAlt Bioenergy shares settled nearly 7 percent higher on the debut day from the IPO price at Rs 529 per share on the NSE on October 3. The shares finished the trade 3 percent lower from its open price.
The stock had made a decent stock market debut, listing with a premium of 10 percent over its IPO price, following a 71.92 times subscription between September 25-29 in the primary market.
Shares of TruAlt Bioenergy Ltd were listed at Rs 545.40 per share on the NSE, a premium of 9.96 percent. The issue had a price band of Rs 472-496 per share.
On the BSE, the shares were listed at Rs 550 per share, a premium of 10.88 percent. The company's market capitalization post listing of shares stood at Rs 4,716.39-crore.
TruAlt Bioenergy IPO share listing was below than the expectations in the grey market, which had expected a gain of nearly 17 percent
Earlier, it collected Rs 252 crore from anchor investors.
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.
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