Trualt Bioenergy IPO: Investors Rush In, Subscription Soars 10x On Final Day

The initial public offering (IPO) of Trualt Bioenergy, one of India’s leading ethanol producers, opened for subscription on September 25 and closes Monday. 

The ₹839.28 crore issue has seen strong investor demand, with subscriptions reaching 10.55 times by 1:00 pm on Day 3. The IPO received bids for 12.49 crore shares against 1.18 crore on offer. 

The retail investor portion was subscribed 5.12 times, while non-institutional investors (NIIs) bid 35.73 times. The qualified institutional buyers (QIBs) quota was subscribed 1.15 times.

Grey Market Premium

The IPO, priced between ₹472–₹496 per share, is witnessing strong activity in the grey market. Shares are trading at a premium of ₹109, suggesting a listing price near ₹605, about 22% higher than the upper end of the price band.

IPO Details

The offer consists of a fresh issue of 1.51 crore shares at ₹750 crore and an offer for sale (OFS) of 0.18 crore shares worth ₹89.28 crore. 

The net proceeds of the fresh issue will be used for ₹425 crore for working capital requirements, ₹150.68 crore towards multi-feedstock and the balance towards general corporate purposes. 

The allotment is expected to be finalised on September 30, with listing for Trualt shares on NSE and BSE scheduled for October 3. Dam Capital Advisors Ltd. is the book-running lead manager, and Bigshare Services Pvt. Ltd. is the registrar.

Analyst View

SEBI-registered analyst Aditya Hujband has given an ‘Apply’ rating on the IPO. 

He noted that some of Trualt Bioenergy’s strengths are that it is among the largest ethanol producers in India, is well diversified in renewable and next-generation fuels, and is well positioned to take advantage of India’s ethanol blending and green energy policies.

It has also entered into strategic collaborations with global companies and first-movers and has an early-mover advantage in SAF and biochemicals.

Hujband also cited risks such as high dependence on ethanol revenues, logistics challenges, regulatory dependence, geographic concentration in Karnataka, operational risks, and rising competition from peers.

He said Trualt Bioenergy’s leadership in ethanol, its expansion plans, and diversification into new fuels make the IPO attractive for long-term investors.

What Is The Retail Mood?

On Stocktwits, retail sentiment was ‘neutral’ amid ‘high’ message volume.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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