TruAlt Bioenergy IPO: Price, Dates, GMP, Review & Analysis

TruAlt Bioenergy IPO 2025: Price Band, Issue Details & Why It Matters for Biofuels Sector

TruAlt Bioenergy Limited, one of India’s largest ethanol producers, is launching its mainboard IPO. This book-built issue is set to raise substantial capital to fund expansion and strengthen its financial position. Here’s a detailed analysis of the company’s background, financials, and a comprehensive review for prospective investors. TruAlt Bioenergy IPO opens Sept 25-29, 2025, with a price band of ₹472-496 per share. IPO size ~₹839 crore includes fresh issue & OFS. Read financials, ethanol capacity, growth plan & risks before you invest

TruAlt Bioenergy Limited Background

Incorporated in 2021, TruAlt Bioenergy Limited has rapidly emerged as a key player in India’s biofuels sector, with a primary focus on ethanol production. . The company boasts an installed ethanol production capacity of 2,000 kilo litres per day (KLPD), making it one of the largest producers in the country. It has a 3.6% market share in India’s ethanol production capacity as of Fiscal 2025.

The company’s operations are spread across five distillery units in Karnataka. While four of these units use molasses and syrup-based feedstocks, the company is strategically moving towards multi-feedstock operations, which will allow it to also use grains. This diversification aims to reduce its reliance on seasonal raw materials. TruAlt also produces Compressed Biogas (CBG) and has plans to venture into second-generation ethanol, sustainable aviation fuel, and allied biochemicals.

IPO Details & Key Dates

The TruAlt Bioenergy IPO is a book-built issue of ₹839.28 crore. The issue is a combination of a fresh issue of ₹750 crore and an Offer for Sale (OFS) of ₹89.28 crore by promoters.

• IPO Dates: The issue opens for subscription on September 25, 2025, and closes on September 29, 2025.
• Listing Date: The shares are expected to be listed on BSE and NSE on October 3, 2025.
• Price Band: The price per share is fixed between ₹472 and ₹496.
• Lot Size: Retail investors can apply for a minimum of 30 shares, requiring a minimum investment of ₹14,880 at the upper price band.
• Lead Managers: DAM Capital Advisors and SBI Capital Markets.
• Registrar: Bigshare Services Pvt. Ltd.

Financials (as of March 31, 2025)

The company has shown a remarkable turnaround in its financial performance, with a significant surge in profitability.

• Key Metrics (FY25):
  • Return on Equity (RoE): 28.27%
  • Price/Earnings (P/E) Ratio: 29.49x (at the upper price band)
  • Debt to Equity Ratio: 2.02
  • PAT Margin: 7.69%

The company’s revenue has grown consistently, and its PAT has seen a huge jump, indicating improved operational efficiency. The IPO proceeds will be used to fund capital expenditure for a new plant and to meet working capital requirements.

Pros & Cons Summary

Strengths (Pros):

• Market Leadership: As one of the largest ethanol producers in India, the company benefits from economies of scale and a strong market position.
• Favorable Industry Outlook: The Government of India’s aggressive push for ethanol blending in petrol provides a huge and stable demand for the company’s products.
• Strong Financial Growth: The company has a proven track record of significant revenue and profit growth.
• Diversified Business Model: The expansion into multi-feedstock ethanol, CBG, and sustainable aviation fuel provides long-term growth avenues.
• Experienced Management: The company benefits from the expertise of the promoters and a seasoned management team.

Weaknesses (Cons):

• High Debt: Despite recent improvements, the company still carries a significant debt burden.
• Raw Material Price Volatility: The profitability is highly dependent on the prices and availability of sugarcane molasses and grains.
• Government Policy Dependency: The business relies heavily on government support and policies like the Ethanol Blending Programme (EBP) and the SATAT scheme. Any change in these policies could negatively impact the company.
• Geographical Concentration: A majority of the company’s operations and sales are concentrated in Karnataka, exposing it to regional risks.

Listing Gain Expectation & Conclusion

The Grey Market Premium (GMP) for TruAlt Bioenergy IPO is currently at nil, which suggests a flat listing. While some sources cite a small premium, the overall sentiment indicates that the stock might not see a significant pop on its listing day. This is often the case with IPOs that are priced fairly to generously based on their fundamentals.

Given its market leadership, strong financials, and the favorable industry tailwinds from the government’s push for green energy, TruAlt Bioenergy is a promising long-term investment. The IPO is an opportunity for the company to deleverage and fund its ambitious growth plans.

For long-term investors looking to tap into India’s growing renewable energy and biofuels sector, this IPO presents a strong investment case. However, those seeking quick listing gains should approach with caution.

(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own. Investors are advised to consult certified financial advisors before making any investment decisions.)