TruAlt Bioenergy IPO: An Overview
TruAlt Bioenergy Ltd.’s initial public offering was subscribed 0.81 times on its second day of bidding on Friday. The company aims to raise nearly Rs 839.28 crore from the primary market. The IPO is a book-built issue that comprises a fresh issue of 1.51 crore shares aggregating Rs 750 crore and an offer-for-sale of 0.18 crore shares totalling Rs 89.28 crore.
Key IPO Details
- The IPO has a price band set between Rs 472 and Rs 496 per share.
- Each lot size consists of 30 shares.
- TruAlt Bioenergy IPO is scheduled to open on Sept. 25, and will close on Sept. 29.
The retail investors require a minimum investment of Rs 14,880 at the upper price band. For Small Non-Institutional Investors (sNII), the minimum investment is 14 lots or 420 shares, totalling Rs 2,08,320. For Big Non-Institutional Investors (bNII), it is 68 lots or 2,040 shares, amounting to Rs 10,11,840.
Subscription Status and GMP
The TruAlt Bioenergy IPO was subscribed 0.81 times as of 5:00 p.m. on Friday. Institutional investors (QIB): 0.87 times or 87%. Non-Institutional investors (NII): 0.80 times or 80%. Retail investors: 0.79 times or 79%.
The latest grey market premium of TruAlt Bioenergy is Rs 92 as of 8:00 p.m. according to Investorgain.com. The stock’s estimated listing price is Rs 588, implying a gain of 18.55% over the IPO price of Rs 496.
Company Profile and Financials
Founded in 2021, TruAlt Bioenergy is primarily engaged in the production of biofuels, with a strong focus on the ethanol segment. Around Rs 150 crore of the proceeds from the IPO will be used for capital expenditure. Nearly Rs 425 crore is allocated for working capital. The remaining funds will be used for general corporate purposes.
For the financial year ended March 31, TruAlt Bioenergy reported a significant jump in total income at Rs 1,968.53 crore, up from Rs 1,280.19 crore the previous year. Profit after tax also saw strong growth, increasing to Rs 146.64 crore from Rs 31.81 crore. Ebitda for the same period stood at Rs 309.14 crore, compared to Rs 188.09 crore in FY24.
Investor Insights and Next Steps
Investors looking to apply for the TruAlt Bioenergy IPO can check the IPO subscription status regularly for updates. It is also essential to keep an eye on the grey market premium to gauge market sentiment.
For those new to IPO investing, understanding the IPO process and how to apply for an IPO can be beneficial. Additionally, staying updated with the latest stock market news and trends can help in making informed investment decisions.