By Ks Badri Narayanan

Copyright thehindubusinessline

Biofuels maker TruAlt Bioenergy’s initial public offering targeting ₹839.38 crore opens for the public today in the ₹472-496 price band. The IPO concludes on September 29 and the market lot is 30 shares. TruAlt’s IPO is a combination of a fresh issue worth ₹750 crore and offer-for-sale (OFS) of ₹89.28 crore by the promoters.

While up to 50 per cent of the IPO is reserved for qualified institutional buyers (QIBs), 35 per cent is reserved for retail investors, and the remaining 15 per cent for non-institutional investors.

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

The Bengaluru-based company on Wednesday raised ₹252 crore from anchor investors as part of the IPO process; the investors included Tata Mutual Fund (MF), HDFC MF, Bandhan MF, SBI General Insurance Company, Societe Generale, and Citigroup Global Markets Mauritius The company has allotted 50.76 lakh equity shares to 19 funds at ₹496 per share, it added.

TruAlt Bioenergy is among the leading biofuels producers and is primarily engaged 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 public issue.

Brokers’ views:

Reliance Securities: While the bioenergy sector in India offers promising growth prospects, companies like TruAlt Bioenergy Ltd need to navigate the associated risks through strategic planning, technological innovation, and proactive policy engagement. With its diversified product portfolio, strategic partnerships, and robust financial performance, the company is well-positioned to capitalise on India’s growing demand for sustainable energy solutions. By addressing these challenges, the company can capitalise on the expanding market opportunities and contribute to India’s sustainable energy future. Owing to such developments, we recommend a subscribe

Published on September 25, 2025