TruAlt Bioenergy IPO Day 1: Issue subscribed 8% so far. Check GMP and other key details

TruAlt Bioenergy’s Rs 839.28-crore initial public offering (IPO) had a subdued start on September 25, the first day of bidding, with the issue subscribed just 8% in the first few hours of trading. Investors bid for 9.92 lakh shares against 1.23 crore shares on offer, according to NSE data.

The IPO is priced in the range of Rs 472–496 per share and comprises a fresh issue of Rs 750 crore, along with an offer-for-sale (OFS) of Rs 89.28 crore.

TruAlt Bioenergy IPO Subscription Status

As of noon, the IPO was subscribed 8%, according to official stock exchange data.

Non-Institutional Investors (NIIs): This segment, which includes high-net-worth individuals and others, was subscribed 9%.

Retail Investors: The retail portion was subscribed 12% against the 61.91 lakh shares reserved for this category.

Qualified Institutional Buyers (QIBs): No bids were received from institutional investors for the 35.10 lakh shares allocated to them. QIBs typically participate on the last day of the issue, which in this case is September 29.

TruAlt Bioenergy IPO GMP Today

TruAlt Bioenergy IPO is currently trading at a grey market premium (GMP) of around 16.2%, or Rs 80, reflecting mild investor optimism about the stock’s potential performance on listing day. Today’s GMP indicates that the stock could list at approximately Rs 576 per share.

Note: The grey market premium (GMP) is an unofficial indicator of a stock’s price before its official listing. Since it operates in an unregulated and unlisted market, GMP values can be volatile and should be interpreted cautiously.

TruAlt Bioenergy IPO Key Details

The subscription window will remain open for three days, from Thursday, September 25, 2025, to Monday, September 29, 2025. The tentative allotment date is Monday, September 29, with the tentative listing scheduled for Friday, October 3, 2025.

Company Overview

TruAlt Bioenergy is among India’s largest ethanol producers, with an installed capacity of 2,000 kilo litres per day (KLPD), representing a 3.6% market share as of FY25.

The company operates five distillery units in Karnataka, four of which use molasses and syrup-based feedstocks. It has also diversified into compressed biogas (CBG) through its subsidiary Leafinity and is exploring new verticals, including second-generation ethanol, sustainable aviation fuel, and biochemicals.

Financial Performance

Financially, TruAlt Bioenergy has reported robust growth. Revenue rose 54% year-on-year to Rs 1,968.53 crore in FY25, while profit after tax jumped more than fourfold to Rs 146.64 crore from Rs 31.81 crore in FY24. EBITDA stood at Rs 309.14 crore in FY25, up from Rs 188.09 crore a year earlier.

The company’s net debt increased to Rs 1,400 crore in FY25 from Rs 1,145 crore in FY23, reflecting ongoing capacity expansion and investments. While the net debt-to-equity ratio fell to 1.8 in FY25 from 6.3 in FY24, it remains higher than the typical range of 0.6–0.8 observed for some peers.

Use of IPO Proceeds

Proceeds from the fresh issue will be primarily used to fund capital expenditure of Rs 150.7 crore for setting up multi-feedstock operations at TruAlt Bioenergy’s 300 KLPD ethanol plant in Karnataka. A major portion, Rs 425 crore, will be allocated for working capital requirements, while the remainder will be used for general corporate purposes.

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