TruAlt Bioenergy Ltd, a producer of biofuels, has set a price range of ₹472 to ₹496 per share for its forthcoming initial public offering (IPO) valued at ₹839 crore. The IPO is slated to open on September 25 and will close on September 29, according to an official announcement.
The offering consists of a fresh issue of shares amounting to ₹750 crore and an offer-for-sale of 1.8 million shares worth ₹89.28 crore at the upper end of the price band, totaling approximately ₹839.38 crore.
Proceeds from the fresh share issuance will be allocated to establishing multi-feed stock operations, addressing debt, and fulfilling general corporate requirements.
Headquartered in Bengaluru, TruAlt Bioenergy is a prominent biofuels manufacturer, focusing primarily on ethanol production. The company is now expanding into new sectors, including second-generation (2G) ethanol production, which will utilize surplus bagasse, a byproduct of sugar manufacturing, as a key raw material.
The company’s operational performance is significantly affected by the pricing and availability of raw materials, such as sugar syrup and molasses. To mitigate dependence on these seasonal inputs, TruAlt has plans to pivot towards grain-based ethanol production.
This strategic initiative is anticipated to stabilize material costs, enhance revenue, and ensure consistent ethanol output.
In terms of IPO allocation, 50 percent is designated for qualified institutional buyers (QIBs), 35 percent for retail investors, and the remaining 15 percent for non-institutional investors. The minimum application lot size is set at 30 shares, with further submissions in multiples of this number.
DAM Capital Advisors and SBI Capital Markets are serving as the book-running lead managers for this public offering.
