TruAlt Bioenergy's Initial Public Offering (IPO) has entered its final day with an interesting mix of low subscription rates and a surprisingly high grey market premium. The biofuel producer's public issue aims to raise Rs 839.28 crore, comprising a fresh issue of Rs 750 crore and an offer-for-sale of Rs 89.28 crore.

Subscription Status

Despite being in its final day, the IPO has seen a tepid response from investors. As of the second day, the issue was subscribed only 0.81 times, indicating a less than enthusiastic reception from the market.

Grey Market Premium

Interestingly, despite the low subscription rate, the grey market is painting a different picture. The grey market premium for TruAlt Bioenergy stands at a robust Rs 109, suggesting an estimated listing price of Rs 605. This indicates a potential gain of 22.00% over the upper price band.

IPO Details

• Price Band: Rs 472 - Rs 496 per share
• Subscription Closing: September 29
• Expected Listing Date: October 3 on BSE and NSE

Company Overview

TruAlt Bioenergy, founded in 2021, focuses on biofuel production. The company has shown significant growth in its total income:

Utilization of IPO Proceeds

The company plans to use the funds raised from the IPO for the following purposes:

• Capital Expenditure: Rs 150 crore
• Working Capital: Rs 425 crore
• General Corporate Purposes: Remaining amount

As the IPO enters its final day, investors will be closely watching to see if the subscription rates pick up to match the optimism seen in the grey market. The contrast between the low subscription and high grey market premium presents an intriguing scenario for market observers and potential investors alike.

TruAlt Bioenergy's Initial Public Offering (IPO) has garnered significant attention in its second day of bidding, with the subscription reaching 0.81 times. The biofuel producer aims to raise a total of Rs 839.28 crore through this public offering, which includes a fresh issue of Rs 750.00 crore and an offer-for-sale component of Rs 89.28 crore.

IPO Details

• Price Band: Rs 472.00 - Rs 496.00 per share
• Lot Size: 30 shares
• Subscription Breakdown:
  • Institutional Investors: 0.87 times
  • Non-Institutional Investors: 0.80 times
  • Retail Investors: 0.79 times
• IPO Closing Date: September 29
• Expected Allotment Date: September 30
• Listing Date: October 3 (on BSE and NSE)

Company Overview

TruAlt Bioenergy, founded in 2021, specializes in the production of biofuels with a primary focus on ethanol. For the fiscal year ended March 31, the company reported:

• Total Income: Rs 1,968.53 crore
• Profit After Tax: Rs 146.64 crore

Utilization of IPO Proceeds

The funds raised through the IPO will be allocated as follows:

• Capital Expenditure: Rs 150.00 crore
• Working Capital: Rs 425.00 crore
• General Corporate Purposes: Remaining amount

Grey Market Premium

The grey market is showing a premium of Rs 92.00 for TruAlt Bioenergy shares, indicating an estimated listing price of Rs 588.00. However, it's important to note that grey market premiums are unofficial and subject to change.

Investors should exercise caution and conduct thorough research before making investment decisions. The IPO's performance in the coming days and the overall market conditions will play crucial roles in determining the final outcome of this public offering.