TruAlt Bioenergy IPO: Raises Rs 252 Cr From Anchors

New Delhi, Sep 24 (PTI) Biofuels producer TruAlt Bioenergy Ltd on Wednesday said it has collected Rs 252 crore from anchor investors, just a day before its initial share-sale opening for public subscription.

Tata Mutual Fund (MF), HDFC MF, Bandhan MF, SBI General Insurance Company, Societe Generale, and Citigroup Global Markets Mauritius featured among the anchor investors, according to a circular uploaded on the BSE website.

The biofuels producer has allotted 50.76 lakh equity shares to 19 funds at Rs 496 per share, it added.

The IPO, with a price band of Rs 472-496 per share, will open for subscription on September 25 and conclude on September 29.

TruAlt's IPO is a combination of a fresh issue of shares worth Rs 750 crore and offer-for-sale (OFS) of 18 lakh shares valued at Rs 89.28 crore at the upper end, by promoters. This aggregates the total issue size to Rs 839.38 crore.

Funds raised through the fresh issuance will be earmarked for setting up multi-feed stock operations, payment of debt and general corporate purposes.

Bengaluru-based TruAlt Bioenergy is among the leading biofuels producers and is primarily in the production of ethanol. The company is diversifying into new areas like second-generation (2G) ethanol, utilising surplus bagasse -- a byproduct of sugar production -- as a raw material.

TruAlt's business performance is heavily influenced by the price and availability of raw materials like sugar syrup and molasses. To reduce reliance on these seasonal resources, the company plans to shift its focus towards producing grain-based ethanol.

This strategic move is expected to help control material costs, optimise revenue, and maintain consistent ethanol production.

In terms of issue allocation, 50 per cent of the IPO is reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors. The minimum lot size for application is 30 shares and in multiples thereafter.

DAM Capital Advisors and SBI Capital Markets are the book-running lead managers of the public issue.