Trualt Bioenergy Limited has made significant moves to support its subsidiary, Trualt Gas Private Limited (TGPL), in the compressed biogas (CBG) sector. The company's board has approved two major financial decisions and a change in key personnel.

Corporate Guarantee and Investment

The board has given the green light for providing a corporate guarantee worth 51% of the project cost for a Rs 180.00 crore term loan from the National Bank for Agriculture and Rural Development (NABARD) to TGPL. This guarantee is intended to support the setting up of three CBG plants, each with a capacity of 20 TPD (tonnes per day).

In addition to the guarantee, Trualt Bioenergy has approved an additional investment of up to Rs 20.00 crore in TGPL's equity shares. This investment will be made at Rs 24.00 per share, with the transaction expected to be completed by November 30, 2025.

Joint Venture with Sumitomo Corporation

The corporate guarantee aligns with the joint venture conditions established with Sumitomo Corporation. Under this arrangement:

This structure ensures proportionate security coverage and equitable commitment from both joint venture partners, facilitating the project's implementation and meeting NABARD's security conditions.

Strategic Implications

The additional investment in TGPL is part of a broader strategic initiative with Sumitomo Corporation. This move aims to:

• Leverage opportunities in the CBG segment under India's renewable energy initiatives
• Combine technical expertise, operational capabilities, and financial resources
• Enhance long-term revenue visibility through participation in an environmentally sustainable business area

Management Changes

In a separate development, the board has removed Deepak Kumar Gulati from his position as Company Secretary and Compliance Officer. The decision was attributed to prolonged absence and unsatisfactory performance.

Conclusion

These strategic decisions reflect Trualt Bioenergy's commitment to expanding its presence in the compressed biogas sector. The company's collaboration with Sumitomo Corporation and investment in its subsidiary demonstrate its focus on sustainable energy solutions and long-term growth in the renewable energy market.

Trualt Bioenergy Limited, a prominent player in India's biofuels sector, has made significant strides in its corporate strategy and financial reporting. The company's board recently approved two major decisions that could shape its future trajectory in the compressed biogas (CBG) market.

Financial Results Approval

The board of Trualt Bioenergy Limited has given its nod to the unaudited standalone and consolidated financial results for the first quarter. This approval marks the company's commitment to transparent financial reporting and adherence to regulatory requirements.

Strategic Acquisition in CBG Sector

In a move to strengthen its position in the compressed biogas market, Trualt Bioenergy has approved the acquisition of a majority stake in Trualt Gas Private Limited. Here are the key details of the acquisition:

About Trualt Gas Private Limited

Trualt Gas, the acquisition target, was incorporated in September 2024. The company operates in the compressed biogas sector but has not yet commenced commercial operations, resulting in zero turnover as of now.

Strategic Implications

This acquisition aligns with Trualt Bioenergy's growth strategy in the CBG sector. The company aims to:

1. Expand its presence in the compressed biogas market
2. Facilitate a proposed joint venture with SUMITOMO Corporation in the biogas business

The move underscores Trualt Bioenergy's commitment to strengthening its position in the renewable energy sector, particularly in biogas production and distribution.

Conclusion

Trualt Bioenergy's latest board decisions reflect its proactive approach to growth and expansion in the biofuels sector. The approval of quarterly results demonstrates financial transparency, while the strategic acquisition of Trualt Gas positions the company for potential growth in the compressed biogas market. As the renewable energy sector continues to evolve, Trualt Bioenergy appears to be making calculated moves to enhance its market presence and explore new business opportunities.