TruAlt Bioenergy shares had a robust entry into the Indian stock markets on Friday, October 3, rewarding investors with double-digit listing gains. The Bengaluru-based biofuels company opened at Rs. 545.40 on the NSE, nearly 10% higher than its issue price of Rs. 496 per share, while on the BSE, the stock listed at Rs. 550, an 11% premium.
The initial public offering (IPO) of TruAlt Bioenergy was open for bidding between September 25–29. Priced in a band of Rs. 472 to Rs. 496 per share, the IPO consisted of a fresh issue worth Rs. 750 crore and an offer-for-sale (OFS) of 18 lakh equity shares, bringing the total issue size to Rs. 839.38 crore.
The IPO was subscribed by 71.92 times overall, drawing in bids and applications of more than Rs. 44,000 crore, which reflects strong investor interest in India’s growing renewable energy sector.
Shares of TruAlt Bioenergy traded at a good premium in the grey market. As of Friday, the IPO GMP was Rs. 85, indicating a listing price of around Rs. 581 per share, which is approximately 17% over the issue price.
During the subscription period, the GMP had even touched as high as Rs. 110-Rs. 115, reflecting bullish sentiment.
Analysts believe the sustained grey market activity was a key indicator of the stock’s strong debut performance.
Founded in 2021 and headquartered in Karnataka, TruAlt Bioenergy is engaged in biofuels production with a primary focus on ethanol. The firm is one of the first to manufacture second-generation ethanol, with excess waste from the sugar industry sourced as feedstock.
While TruAlt is currently using sugarcane-based inputs such as molasses and syrup, management continues to work for a full transition to grain-based ethanol to achieve a more stable supply chain throughout the year.
The company plans to utilize IPO proceeds to set up multi-feed stock operations, reduce debt, and fund general corporate purposes.
Market experts note that TruAlt’s success depends on its capacity to obtain raw materials at competitive rates and ramp up 2G ethanol production. Due to ongoing government support of continuing biofuel usage and the ethanol blending policy, growth in the industry is expected to accelerate.
Considering the solid subscription rates and listing gains, analysts believe the company will remain on investors’ radar. However, fluctuations in feedstock prices and execution risk around capacity expansion may present challenges in the medium term.
Also Read: IPOs vs. Secondary Market: Which Offers Better Returns for Investors?
The successful launch of TruAlt Bioenergy, which saw nearly 10-11% of its listings premiums, shows the market's interest in renewable energy plays. TruAlt's goal of diversifying its ethanol operations while stabilizing its supply chain will help it take potential long-term opportunities in India's clean energy transition, as its near-term opportunity is closely monitored by the market.
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