Strong response from investors
The Rs 839.28 crore IPO, which opened on September 25 and closed on September 29, witnessed massive demand across categories. The issue was subscribed 75 times overall, led by institutional investors. The qualified institutional buyer (QIB) portion was subscribed over 165 times, non-institutional investors (NIIs) 103 times, and the retail segment 11.5 times. Anchor investors had already contributed Rs 251.78 crore a day before the issue opened.
The offering comprised a fresh issue of Rs 750 crore and an offer for sale of Rs 89.28 crore. Proceeds will be used to set up grain-based ethanol capacity at one of its Karnataka units, support working capital, and fund general corporate purposes.
About the company
TruAlt Bioenergy is among the largest ethanol producers in India, with an installed capacity of 2,000 kilo litres per day (KLPD), accounting for about 3.6% of domestic ethanol production capacity. Apart from ethanol, the company has entered the compressed biogas (CBG) space and plans to expand into second-generation ethanol, sustainable aviation fuel, and allied chemicals.
TruAlt operates five distillery units in Karnataka, mostly molasses- and syrup-based, and is expanding capacity through new projects and partnerships, including MoUs with Japanese and Singaporean firms.
Financials and valuation
The company has reported rapid growth. Revenue rose 54% to Rs 1,969 crore in FY25, while net profit jumped nearly fivefold to Rs 147 crore from Rs 32 crore in FY24. Margins improved, with EBITDA rising to Rs 309 crore from Rs 188 crore.At the upper price band, Trualt’s valuation works out to about 29 times FY25 earnings, higher than some established peers in the biofuel and renewable energy space. Its debt-to-equity ratio stood at 2.02, though borrowings have reduced from FY24.
Outlook
Analysts say the bumper subscription reflects strong investor appetite for renewable energy and ethanol plays, supported by government blending mandates. However, valuations appear aggressive. TruAlt Bioenergy’s post-listing performance will depend on the execution of its expansion plans and stability in policy support.
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