TruAlt Bioenergy IPO Subscribed 44% on Day 1

New Delhi, Sep 25 (PTI) The initial share sale of biofuels producer TruAlt Bioenergy Ltd got subscribed 44 per cent on the first day of the offering on Thursday.

The IPO received bids for 54,93,990 shares against 1,23,55,424 shares on offer, according to NSE data.

Qualified Institutional Buyers (QIBs) portion received 86 per cent subscription while the quota for Retail Individual Investors (RIIs) got subscribed 30 per cent. The portion for non-institutional investors attracted 24 per cent subscription.

TruAlt Bioenergy Ltd on Wednesday said it has collected Rs 252 crore from anchor investors.

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

TruAlt's IPO is a combination of a fresh issue of shares worth Rs 750 crore and an 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 839.28 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.

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