GAIL (India) Limited has completed a strategic investment of ₹130 million in Leafiniti Bioenergy Private Limited (LBPL), a subsidiary of TruAlt Bioenergy Limited, establishing a significant partnership in the compressed biogas (CBG) sector. The investment was announced through an official press release on March 19, 2026, marking a notable development in India's renewable energy landscape.

Investment Structure and Partnership Details

The investment is executed pursuant to a Share Subscription-cum-Shareholders' Agreement signed on August 11, 2025. Under this arrangement, GAIL will acquire a 49% equity stake in Leafiniti Bioenergy, while TruAlt retains majority control with 51% ownership.

CBG Plant Development and Capacity

The joint venture will focus on establishing multiple greenfield CBG plants across Karnataka, Maharashtra, and Odisha. In its first phase, the partnership will develop six state-of-the-art facilities, each with a capacity of 12 tonnes per day, utilizing associated residues from sugar mills.

Environmental Impact and Strategic Vision

The project is projected to deliver significant environmental benefits, including the displacement of approximately 19,800 tonnes of fossil fuels annually and avoiding 9,300 tonnes of methane emissions per annum. This aligns with India's climate commitments and net-zero by 2070 vision.

Vijay Nirani, Founder & Managing Director of TruAlt Bioenergy, emphasized the strategic importance of the partnership: "This joint venture goes beyond infrastructure or investment; it reflects a new paradigm in energy thinking where national security, rural prosperity and climate action are not competing priorities, but converging outcomes."

Rajeev Kumar Singhal, Director Business Development at GAIL (India) Limited, highlighted the sector's potential: "India currently imports about 50% of its natural gas requirement. By scaling up CBG, we can reduce foreign exchange outflows strengthen energy security against global price and supply shocks."

Market Implications

The collaboration combines TruAlt's expertise in bioenergy production with GAIL's extensive gas infrastructure and market reach. TruAlt Bioenergy, recognized as one of India's largest biofuels companies and the country's only dedicated bioenergy enterprise, is also the first biofuels company in India to attain Oil Marketing Company (OMC) status. The partnership positions both companies to leverage their complementary strengths in advancing India's CBG sector development and energy transition goals.

TruAlt Bioenergy Limited has reported substantial progress in utilizing its Initial Public Offer (IPO) proceeds during the quarter ended December 31, 2025. The company utilized Rs 519.63 crore out of the total gross proceeds of Rs 750.00 crore, with monitoring agency Crisil Ratings Limited confirming no deviations from the stated objectives.

IPO Details and Financial Overview

The company's IPO was conducted from September 25, 2025, to September 29, 2025, raising gross proceeds of Rs 750.00 crore. After deducting issue expenses of Rs 92.96 crore, the net proceeds stood at Rs 657.04 crore.

Utilization Across Key Objectives

The proceeds were allocated across three primary objectives as outlined in the offer document. The largest allocation was towards working capital requirements, followed by capital expenditure for multi-feedstock operations.

Capital Expenditure Progress

For funding capital expenditure towards setting up multi-feedstock operations at TBL Unit 4 of 300 KLPD capacity, the company utilized Rs 140.13 crore out of the allocated Rs 150.68 crore. The proceeds were used for purchasing plant and machinery to enable grain utilization as additional raw material in ethanol production.

Working Capital and Corporate Purposes

The working capital funds were deployed towards vendor payments, while general corporate purposes included meeting company expenses and investment in subsidiary Truault Gas Private Limited.

Deployment of Unutilized Proceeds

The remaining Rs 230.37 crore is strategically deployed across various financial instruments and accounts. The company has invested Rs 150.00 crore in term deposits with Kotak Mahindra Bank, earning returns of 5.00% with maturity on January 14, 2026.

General Corporate Purpose Breakdown

The company provided detailed utilization of Rs 69.99 crore allocated for general corporate purposes, approved by the Board of Directors on February 3, 2026:

• Meeting company expenses: Rs 41.56 crore (including SBI cash credit adjustment and GST payments)
• Acquisition activities: Rs 8.43 crore for acquiring 51% shareholding in Truault Gas Private Limited
• Subsidiary investment: Rs 20.00 crore in Truault Gas Private Limited

Monitoring Agency Assessment

Crisil Ratings Limited confirmed that all utilization aligned with disclosures in the offer document. The monitoring agency reported no material deviations, unfavorable events affecting viability, or delays in implementation of stated objectives. The company maintained proper documentation through peer-reviewed independent chartered accountant certificates and management undertakings.

The monitoring report, reviewed and approved by the company's Audit Committee and Board of Directors on February 2, 2026, and February 3, 2026, respectively, demonstrates TruAlt Bioenergy's systematic approach to IPO proceeds deployment while maintaining regulatory compliance.