TruAlt Bioenergy IPO: A Comprehensive Overview for Indian Investors
TruAlt Bioenergy Ltd.’s initial public offering (IPO) has garnered significant attention from investors, with the company aiming to raise nearly Rs 839.28 crore from the primary market. In this article, we will delve into the latest subscription status, grey market premium (GMP), and other key details that Indian investors need to know.
Subscription Status: Day Two Updates
As of the second day of bidding on Friday, the TruAlt Bioenergy IPO was subscribed 0.81 times. The issue received a decent response from institutional investors, with the QIB (Qualified Institutional Buyers) portion subscribed 0.87 times, while the non-institutional investors (NII) segment was subscribed 0.80 times. Retail investors, on the other hand, subscribed 0.79 times.
The IPO is a book-built issue, comprising 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 for the issue has been set between Rs 472 and Rs 496 per share, with each lot size consisting of 30 shares.
Investor Requirements and Allotment Details
For retail investors, the minimum investment required is Rs 14,880 at the upper price band. Small Non-Institutional Investors (sNII) need to invest a minimum of 14 lots or 420 shares, totalling Rs 2,08,320, while Big Non-Institutional Investors (bNII) require a minimum investment of 68 lots or 2,040 shares, amounting to Rs 10,11,840.
The basis of allotment is expected to be finalized on September 30, with the tentative listing date for TruAlt Bioenergy on the BSE and NSE set for October 3. Dam Capital Advisors Ltd. is the book running lead manager, and Bigshare Services Pvt. Ltd. is the registrar of the issue.
Company Overview and Financial Performance
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, with Rs 1,968.53 crore in the financial year ended March 31, 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.
The company plans to utilize the proceeds from the IPO for various purposes, including capital expenditure (around Rs 150 crore), working capital (nearly Rs 425 crore), and general corporate purposes.
Grey Market Premium (GMP) and Estimated Listing Price
The latest grey market premium of TruAlt Bioenergy is Rs 92, as of 8:00 p.m. on Friday, 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.
It is essential to note that GMP does not represent official data and is based on speculation. Investors should exercise caution and consult with financial advisors before making any investment decisions.
Investment Opportunities and Risks
The TruAlt Bioenergy IPO offers an opportunity for investors to participate in the growing biofuels sector, particularly in the ethanol segment. However, as with any investment, there are risks involved, and investors should carefully evaluate the company’s financial performance, industry trends, and market conditions before making a decision.
For more information on the Indian stock market and IPOs, visit our website: https://sharemarketcoder.in/?s=Indian+stock+market+news. You can also learn more about IPO investment strategies and biofuels industry trends to make informed investment decisions.