Mumbai: TruAlt Bioenergy, one of India’s largest biofuels companies, has opened its Initial Public Offering (IPO) for public subscription on September 25, 2025. The ₹839 crore issue is among the most closely tracked in the energy and renewables sector this year, as it highlights the government’s continued push for ethanol blending and biofuels in the country’s energy mix. The subscription window will remain open until September 29, 2025, and shares are scheduled to be listed on October 3, 2025, on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
IPO Structure and Price Band
The TruAlt Bioenergy IPO comprises a fresh issue worth ₹750 crore and an offer-for-sale (OFS) component of ₹89.28 crore by promoters. The price band has been fixed at ₹472 to ₹496 per share, with a face value of ₹10 per share.
Investors can apply with a lot size of 30 shares, translating into a minimum investment of ₹14,880 at the upper price band. The issue has been structured to attract a broad spectrum of investors, including Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Individual Investors (RIIs).
Company Overview
TruAlt Bioenergy is headquartered in Karnataka and is a leading player in the ethanol and biofuels space. With an installed capacity of nearly 2,000 KLPD (kilo liters per day), the company is positioned as one of India’s largest ethanol producers. It supplies ethanol to oil marketing companies (OMCs) as part of the government’s Ethanol Blended Petrol (EBP) program.
The company’s operations are diversified across ethanol production, compressed biogas (CBG), and allied businesses. Recently, TruAlt received authorization as an Oil Marketing Company (OMC) from the Ministry of Petroleum and Natural Gas. This paves the way for it to enter the fuel retailing business, with plans to open around 100 retail fuel outlets across India.
TruAlt’s strategy to diversify into multiple feedstocks—beyond molasses and sugarcane to include grains and other by-products—gives it a competitive edge, particularly as raw material volatility remains a key industry risk.
Use of IPO Proceeds
Funds raised from the fresh issue will be utilized for the following purposes:
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Capital Expenditure (CapEx): Approximately ₹150.68 crore will be used to set up multi-feedstock ethanol facilities, allowing flexibility to process different raw materials.
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Working Capital Requirements: Around ₹425 crore will be earmarked for working capital needs, supporting the company’s scale-up and day-to-day operations.
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General Corporate Purposes: The remainder will go towards strengthening the balance sheet and meeting general business needs.
Financial Performance
TruAlt Bioenergy has demonstrated strong financial growth over recent years. The company has reported rising revenues, healthy profit margins, and expanding capacity utilization. Its focus on ethanol production and diversification into CBG has aligned well with India’s green energy transition.
However, analysts point out that the company carries significant debt on its books, which could impact profitability if market conditions weaken. Additionally, high reliance on government policies and ethanol blending mandates makes the business sensitive to regulatory changes.
Subscription Status and Market Response
On Day 1 of the IPO, TruAlt Bioenergy witnessed a moderate start, with overall subscription at about 8% by midday. The retail investor category showed interest, while institutional participation is expected to pick up in the coming days.
In the grey market, the IPO was trading at a premium of around ₹80 above the upper price band, suggesting a notional listing price of around ₹576 per share. This indicates positive investor sentiment, though analysts caution against relying solely on grey market trends.
Analyst Views
Brokerage houses and market experts have offered mixed but cautiously optimistic reviews of the IPO:
Strengths noted by analysts include:
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Strong presence in the ethanol industry with large production capacity.
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Authorization as an Oil Marketing Company, opening new avenues for growth.
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Diversified feedstock strategy to reduce raw material risk.
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Positive sector outlook, supported by government focus on renewable energy and ethanol blending.
Risks highlighted include:
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High debt levels compared to industry peers.
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Customer concentration risk, with significant dependence on OMCs for ethanol offtake.
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Low utilization rates of existing plants, which could weigh on returns.
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Exposure to regulatory and policy risks, especially in the energy and agriculture sectors.
While some analysts have given a “subscribe with caution” rating, others have recommended subscribing for the long term, citing strong industry growth prospects.
Key IPO Dates
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Issue Opens: September 25, 2025
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Issue Closes: September 29, 2025
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Allotment Finalisation: September 30, 2025
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Refunds / Share Credit: October 1, 2025
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Listing Date (Tentative): October 3, 2025
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Registrar: Bigshare Services Pvt. Ltd.
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Book Running Lead Managers: DAM Capital Advisors and SBI Capital Markets
Conclusion
The TruAlt Bioenergy IPO comes at a time when India is aggressively pursuing its ethanol blending targets and renewable energy goals. The company’s leadership position in the ethanol industry, plans for expansion, and entry into fuel retailing make it a significant player to watch. However, investors must weigh the opportunities against the risks, particularly its debt levels and regulatory dependence.
If the IPO is fully subscribed and lists at the expected premium, it could signal strong investor appetite for green energy and biofuels companies in India’s capital markets.
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