TruAlt Bioenergy IPO: Day 2 Subscription Status and Key Details
TruAlt Bioenergy Ltd.’s initial public offering was subscribed 0.81 times on its second day of bidding on Friday, with the company aiming to raise nearly Rs 839.28 crore from the primary market. The IPO news has been closely watched by investors, given the company’s strong focus on the ethanol segment and its potential for growth.
IPO Details
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. The price band has been set between Rs 472 and Rs 496 per share, with each lot size consisting of 30 shares.
The IPO investment requirements for retail investors are a minimum 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
The TruAlt Bioenergy IPO was subscribed 0.81 times as of 5:00 p.m. on Friday, with institutional investors (QIB) subscribing 0.87 times or 87%, non-institutional investors (NII) subscribing 0.80 times or 80%, and retail investors subscribing 0.79 times or 79%.
Grey Market Premium (GMP)
The latest grey market premium of TruAlt Bioenergy is Rs 92 as of 8:00 p.m. according to Investorgain.com, with the stock’s estimated listing price being Rs 588, implying a gain of 18.55% over the IPO price of Rs 496.
Note: GMP does not represent official data and is based on speculation. GMP data sourced from InvestorGain.
Company Background
Founded in 2021, TruAlt Bioenergy is primarily engaged in the production of biofuels, with a strong focus on the ethanol segment. The company has reported a significant jump in total income for the financial year ended March 31, with a total income of 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.
Use of Proceeds
Around Rs 150 crore of the proceeds from the IPO will be used for capital expenditure, with nearly Rs 425 crore allocated for working capital. The remaining funds will be used for general corporate purposes.
Listing Date
The basis of allotment is expected to be finalised on September 30, with the tentative listing date for TruAlt Bioenergy on the BSE and NSE being October 3.
Dam Capital Advisors Ltd. is the book running lead manager, and Bigshare Services Pvt. Ltd. is the registrar of the issue.
Investment Opportunities
Investors looking to invest in the Indian stock market can consider the TruAlt Bioenergy IPO as a potential opportunity, given the company’s strong growth prospects and focus on the ethanol segment.
However, it’s essential to conduct thorough research and analysis before making any investment decisions, including evaluating the company’s financials, management team, and industry trends.
Conclusion
The TruAlt Bioenergy IPO has garnered significant attention from investors, given the company’s strong focus on the ethanol segment and its potential for growth.
As the IPO subscription period comes to a close, investors will be eagerly waiting to see the final subscription status and the listing price of the stock.
Stay tuned for more updates on the stock market news and IPO updates to make informed investment decisions.