TruAlt Bioenergy IPO: Overview and Objective
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. The IPO, which opened on September 25, 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.
Price Band and Lot Size
The IPO has a price band set between Rs 472 and Rs 496 per share, with each lot size consisting of 30 shares. This implies that 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 Investor Interest
As of the second day of bidding, the TruAlt Bioenergy IPO was subscribed 0.81 times. The subscription status is as follows: Institutional investors (QIB): 0.87 times or 87%, Non-Institutional investors (NII): 0.80 times or 80%, and Retail investors: 0.79 times or 79%. This indicates a moderate level of interest from investors, with QIBs showing the highest subscription rate.
Grey Market Premium (GMP) and Estimated Listing Price
The latest grey market premium of TruAlt Bioenergy is Rs 92, 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. Grey Market Premium does not represent official data and is based on speculation. Investors should exercise caution and consult with financial experts before making any investment decisions.
Company Profile and Financial Performance
Founded in 2021, TruAlt Bioenergy is primarily engaged in the production of biofuels, with a strong focus on the ethanol segment. For the financial year ended March 31, the company 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.
Utilization of IPO Proceeds
Around Rs 150 crore of the proceeds from the IPO will be used for capital expenditure, while nearly Rs 425 crore is allocated for working capital. The remaining funds will be used for general corporate purposes. This suggests that the company is focusing on expanding its operations and improving its financial performance.
Conclusion and Future Outlook
The TruAlt Bioenergy IPO presents an opportunity for investors to participate in the growth of the biofuel industry. With a strong financial performance and a clear plan for utilizing the IPO proceeds, the company is well-positioned for future growth. However, investors should carefully evaluate the IPO subscription status and grey market premium before making any investment decisions.