Trualt Bioenergy opens with 16% GMP: Should you invest in ethanol giant?

Trualt Bioenergy IPO opens for public subscription today: Check price band, lot size, GMP, review, key dates, and other details here

Trualt Bioenergy IPO Opens for Subscription: The Initial Public Offering (IPO) of ethanol producer Trualt Bioenergy opens for public subscription today. The company aims to raise ₹839 crore through its maiden offering, which comprises a combination of a fresh issue of equity shares and an offer for sale (OFS) of the company’s shares.

 

Ahead of the IPO opening, Trualt Bioenergy announced that it had raised ₹252 crore from anchor investors, with bidding concluding on September 24. The anchor book attracted participation from both domestic and foreign investors. Notable participants included Tata Mutual Fund, HDFC Mutual Fund, Bandhan Mutual Fund, SBI General Insurance Company, Societe Generale, and Citigroup Global Markets Mauritius.

Trualt Bioenergy IPO structure, price band

According to the Red Herring Prospectus (RHP), Trualt Bioenergy IPO consists of a fresh issue of 15.1 million equity shares amounting to ₹750 crore. Additionally, promoters Dhraksayani Sangamesh Nirani and Sangamesh Rudrappa Nirani are offering up to 1.8 million equity shares through an offer for sale, estimated to be worth ₹89.28 crore.

 

Trualt Bioenergy IPO is priced in the range of ₹471 to ₹496 per share. The lot size is 30 shares, and investors can apply in multiples of this lot. A retail investor would need a minimum investment of ₹14,880 to apply for one lot. The maximum application limit for retail investors is 13 lots, or 390 shares, amounting to ₹1,93,440.

Grey market sentiment

The grey market trend suggests positive investor sentiment around the public offering. As per sources tracking grey market activity, Trualt Bioenergy’s unlisted shares are trading at approximately ₹576 per share. This reflects a grey market premium (GMP) of ₹80 per share, or around 16.13 percent, over the upper price band of ₹496 per share.

 

Registrar, lead managers

Trualt Bioenergy has appointed DAM Capital Advisors and SBI Capital Markets as the book-running lead managers for the IPO. Bigshare Services has been designated as the registrar for the public issue.

Utilisation of proceeds

The company will not receive any proceeds from the offer for sale, as those funds will go to the selling shareholders after deducting relevant taxes and offer-related expenses. However, the proceeds from the fresh issue will be utilised for several strategic purposes. These include funding capital expenditure to establish multi-feedstock operations at its TBL Unit 4, which has a 300 KLPD capacity and will enable the use of grains as an alternative raw material in ethanol production. Additional funds will be deployed towards working capital requirements and for general corporate purposes.

Should you subscribe to Trualt Bioenergy IPO?

  Reliance Securities - Subscribe

Analysts at Reliance Securities have recommended subscribing to the public issue. They highlighted that while the bioenergy sector in India offers promising growth prospects, companies like Trualt Bioenergy need to navigate associated risks through strategic planning, technological innovation, and proactive policy engagement.

 

“With its diversified product portfolio, strategic partnerships, and robust financial performance, the company is well-positioned to capitalize on India’s growing demand for sustainable energy solutions. By addressing challenges effectively, the company can leverage expanding market opportunities and contribute meaningfully to India’s sustainable energy future. Hence, we recommend subscribing,” wrote the analysts in a research note. 

About Trualt Bioenergy

Trualt Bioenergy is one of India’s leading producers of biofuels, with a strong focus on ethanol. The company holds the title of being the largest ethanol producer in the country in terms of installed capacity. As of March 31, 2025, Trualt has a total installed ethanol production capacity of 2,000 kilo litres per day (KLPD), with an operational capacity of 1,800 KLPD. During FY 2025, the company held a 3.6 percent share of the domestic ethanol production market, underlining its strong industry presence.