TruAlt Bioenergy IPO: An Overview for Indian Investors
TruAlt Bioenergy Ltd.’s initial public offering was subscribed 0.81 times on its second day of bidding on Friday, indicating a moderate response from investors. The company aims to raise nearly Rs 839.28 crore from the primary market through this book-built issue, which 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 for Investors
The IPO has a price band set between Rs 472 and Rs 496 per share, with each lot size consisting of 30 shares. This means 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.
The basis of allotment is expected to be finalised on September 30, and the tentative listing date for TruAlt Bioenergy on the BSE and NSE is October 3. Dam Capital Advisors Ltd. is the book running lead manager, and Bigshare Services Pvt. Ltd. is the registrar of the issue.
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. This sector is gaining traction due to the government’s push for renewable energy sources and reduction of dependence on fossil fuels. For more information on biofuel industry in India, visit our detailed guide.
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. These financials indicate a positive growth trajectory for the company, which could be an attractive factor for potential investors looking to invest in growth stocks in India.
Subscription Status and Grey Market Premium (GMP)
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%.
The latest Grey Market Premium (GMP) 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. However, it’s essential to note that GMP does not represent official data and is based on speculation. Investors should consult IPO investment strategies and do their own research before making any investment decisions.
Utilization of IPO Proceeds
Around Rs 150 crore of the proceeds from the IPO will be used for capital expenditure, which could further enhance the company’s production capabilities and contribute to its growth in the bioenergy sector. Nearly Rs 425 crore is allocated for working capital, which will help in managing the day-to-day operations of the company efficiently. The remaining funds will be used for general corporate purposes, providing the company with the flexibility to address any upcoming opportunities or challenges.
In conclusion, the TruAlt Bioenergy IPO presents an opportunity for investors to participate in the growing bioenergy sector. With its strong financial performance and plans for expansion, the company is poised for further growth. However, as with any investment, it’s crucial for potential investors to carefully evaluate the company’s prospects, industry trends, and market conditions before making a decision. For more insights on how to invest in IPO and to stay updated on the latest Indian stock market news, keep visiting our website.