TruAlt Bioenergy IPO opens today: Check analyst reviews, issue details latest GMP & more

The initial public offering (IPO) of TruAlt Bioenergy shall open for bidding on Thursday, September 25. The company shall be offering its shares in the range of Rs 472-496 apiece. Investors can apply for a minimum of 30 equity shares and its multiples thereafter. The issue shall close for bidding on Monday, September 29.

TruAlt Bioenergy is looking to raise a total of Rs 839.28 crore via IPO, which includes a fresh share sale of Rs 750 crore and an offer-for-sale (OFS) of up to 18,00,000 equity shares worth Rs 89.28 crore. The net proceeds from the issue shall be utilized towards funding capex for setting up a new facility, funding working capital needs and general corporate purposes.

Karnataka-based TruAlt Bioenergy, incorporated in 2021, is engaged in the production of biofuels, with a primary focus on the ethanol sector. It is one of the largest Ethanol producers in India based on installed capacity of 2,000 kilo litres per day (KLPD). Its business operations span across ethanol production and compressed biogas (CBG) production.

Ahead of its IPO, TruAlt Bioenergy raised a total of Rs 252 crore via anchor investors as it allocated 50,76,289 shares at Rs 496 apiece. Its anchor book included names like Citigroup Global, Rajasthan Global Securities, Saint Capital, Societe Generale, Tata Mutual Fund, NAV Capital VCC, Invesco India Mutual Fund, Bandhan Mutual Fund, SBI General Insurance Company and more.

TruAlt Bioenergy reported a net profit of Rs 146.64 crore with a revenue of Rs 1,968.53 crore for the financial year ended on March 31, 2025. The company clocked a bottomline of Rs 31.81 crore with a revenue of Rs 1,280.19 crore for the year 2023-24. At the current valuations, it commands a market capitalization close to more than Rs 4,250 crore.

Jinkushal Industries has reserved 50 per cent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) have 15 per cent of allocation. Retail investors have a 35 per cent reservation in the IPO. Last heard, it was commanding a grey market premium (GMP) of Rs 80 apiece, suggesting a more than 16 per cent listing pop for the investors.

DAM Capital Advisors and SBI Capital Markets are the book running lead managers for TruAlt Bioenergy IPO, while Bigshare Services is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE with Friday, October 3 as the listing date. Here's what a host of brokerage firm say about the IPO of TruAlt Bioenergy:
 

BP Equities
Rating: Subscribe
TruAlt's strong capacity base, diversified feedstock strategy, and entry into new biofuel verticals provide significant growth visibility. India’s ethanol blending targets, mandatory CBG blending initiatives, and the expected demand for SAF driven by global carbon reduction requirements create a favourable market environment, said BP Equities. with a 'subscribe' rating.
 

Ventura Securities
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With significant growth potential in biofuels and a strong alignment with government policies like the National Biofuels Policy and the SATAT initiative, TruAlt Bioenergy is well-positioned to capitalize on the growing demand for renewable energy, said Ventura Securities.

"It aims to reduce its dependence on traditional feed and enhance operational efficiency by integrating sustainable solutions into its production processes. The company’s IPO will allow it to fund these expansion efforts and strengthen its market position in India's biofuel sector," it said.
 

Marwadi Financial Services
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"We assign a 'subscribe' rating to this IPO as they are well-positioned to capture favourable industry tailwinds along with the largest installed capacity for production of ethanol in India," said Marwadi Financial Services. "It is available at a reasonable valuation considering the growth potential of the company," it added.
 

Adroit Financial Services
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Trualt has entered into a strategic joint venture agreement with GAIL, under which GAIL will acquire a 49 per cent equity stake in Leafiniti Bioenergy (LBPL), a subsidiary of Trualt. In the first phase, the joint venture will set up six compressed biogas plants, each with a capacity of 12 TPD, said Adroit Financial Services.

"The company has received approval to expand its capacity up to 5,100 KLPD; however, it currently does not have any plans to undertake such expansion. Therefore, it is recommended to 'subscribe' to the IPO for long-term investment, considering it’s valuation and growth potential," it said.
 

GEPL Capital
Rating: Subscribe
Trualt Bioenergy has one of the largest ethanol production capacities in India with 4 molasses and sugar syrup based distillery units. It has executed a 600 KLPD capacity expansion and secured approval from the Karnataka State High-Level Clearance Committee to scale production to 4,600 KLPD, said GEPL Capital.

"Based on the FY25 earnings, relative to the company's post-IPO paid up capital, the issue is priced at a P/E ratio of 29.01 times. We believe that the company is fairly valued compared to its peers, demonstrated healthy financial performance, and expanded its capacity. Therefore, we recommend a 'subscribe' rating for the issue," it added.