TruAlt Bioenergy, one of India's largest ethanol producers, made a strong market debut on October 3, with its shares listing at a premium on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Impressive Listing Performance

The company's shares opened at Rs 550.00 on the BSE, representing a robust 10.89% premium over the initial public offering (IPO) price of Rs 496.00. On the NSE, the stock commenced trading at Rs 545.40, marking a 9.96% increase from the issue price.

Oversubscribed IPO

The impressive listing follows an overwhelmingly successful IPO, which raised Rs 839.28 crore and was oversubscribed by 75 times overall. The offering saw strong demand across investor categories:

• Qualified institutional buyers: 165 times oversubscribed
• Non-institutional investors: 103 times oversubscribed
• Retail investors: 11.5 times oversubscribed

Company Profile

TruAlt Bioenergy stands out as a major player in India's ethanol production sector:

• Installed capacity of 2,000 KLPD (Kilo Liters Per Day)
• Accounts for 3.6% of domestic ethanol production capacity

Financial Performance

The company has demonstrated strong financial growth:

IPO Proceeds Utilization

The funds raised from the IPO will be allocated towards:

1. Expanding grain-based ethanol capacity at the company's Karnataka unit
2. Meeting working capital requirements
3. General corporate purposes

Valuation and Financial Position

At the upper price band of the IPO:

• The company is valued at approximately 29 times its FY25 earnings
• The debt-to-equity ratio stands at 2.02

TruAlt Bioenergy's successful listing and the overwhelming response to its IPO reflect investor confidence in the company's growth prospects and its position in the burgeoning ethanol production sector. As India continues to push for increased ethanol blending in fuels, companies like TruAlt Bioenergy are well-positioned to capitalize on the growing demand for renewable energy solutions.

TruAlt Bioenergy Ltd. is poised for a strong market debut as its shares are scheduled to list on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) today. The company's Initial Public Offering (IPO) has generated significant buzz in the investment community, with grey market trends suggesting a potential 18% premium on listing.

IPO Performance

The Rs 839-crore IPO of TruAlt Bioenergy witnessed overwhelming investor interest, resulting in an impressive oversubscription of 65.01 times. The offer received bids for 88.86 crore shares against the 1.24 crore shares available, highlighting the strong demand from investors.

Grey Market Premium

The grey market, often considered an indicator of listing day performance, is showing a premium of Rs 90 for TruAlt Bioenergy shares. This suggests an estimated listing price of Rs 586.00, compared to the upper price band of Rs 496.00 set during the IPO. If this holds true, investors could potentially see gains of approximately 18.15% on the first day of trading.

IPO Structure and Fund Allocation

The IPO comprised two components:

1. A fresh issue of shares worth Rs 750.00 crore
2. An offer-for-sale amounting to Rs 89.28 crore

The company has outlined its plans for utilizing the proceeds from the fresh issue:

• Rs 150.00 crore allocated for capital expenditure
• Rs 425.00 crore earmarked for working capital requirements
• The remaining funds to be used for general corporate purposes

Investor Participation

The success of the IPO was largely driven by strong participation from non-institutional buyers, indicating confidence in the company's prospects among a diverse range of investors.

As TruAlt Bioenergy prepares for its market debut, all eyes will be on its performance in the early hours of trading. The substantial oversubscription and positive grey market premium suggest a favorable reception from the investment community, setting the stage for what could be a noteworthy listing day for the company.