TruAlt Bioenergy, one of India's largest biofuel producers, has witnessed a robust response to its Initial Public Offering (IPO), achieving a 14-fold oversubscription on the final day of bidding. The ₹839 crore IPO saw particularly strong interest from Non-Institutional Investors, who oversubscribed their portion by 45.4 times.

IPO Details

The IPO comprises a fresh equity issue of ₹750 crore and an Offer for Sale (OFS) of ₹89 crore. The company has set the price band for the issue between ₹472 and ₹496 per share.

Subscription Breakdown

The subscription details across various investor categories are as follows:

Company Profile

TruAlt Bioenergy holds a significant position in India's biofuel industry:

• Market share: 3.6% in ethanol production
• Production capacity: 2,000 KLPD (Kilo Litres Per Day)

Fund Utilization

The company plans to use the IPO proceeds for:

• Multi-feed stock operations: ₹150.68 crore
• Working capital requirements: ₹425 crore
• General corporate purposes

Market Sentiment

The strong demand for the IPO is reflected in the grey market as well, with the stock trading at a premium of ₹109 in the unlisted markets.

Shareholding Structure

Post-IPO, the promoter shareholding in TruAlt Bioenergy is expected to decrease from 88.2% to 70.55%.

The overwhelming response to TruAlt Bioenergy's IPO, particularly from Non-Institutional Investors, suggests strong interest in the biofuel sector. As one of India's largest biofuel producers, the company's public offering has attracted significant attention from various investor categories.

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.