By Mimansha Bashishtha | New Delhi
Shares of biofuels producer TruAlt Bioenergy Ltd listed with a premium of nearly 11 per cent against the issue price of Rs 496. On the BSE, the stock listed at Rs 550, a jump of 10.88 per cent from the issue price. Shares of the company started trading at Rs 545.40, a premium of 9.95 per cent on the NSE.
The Initial Public Offering (IPO) of the company had a subscription period that ran from September 25 until September 29, with its shares priced between ₹472 and ₹496.
Trualt’s IPO subscription status was 71.92 times on the last day of bidding. Breaking this down, the QIB (institutional investor) portion was subscribed 159 times, the NII (high net worth) category 98 times, and the retail portion 11 times, indicating strong investor interest.
Tata Mutual Fund (MF), HDFC MF, Bandhan MF, SBI General Insurance Company, Societe Generale, and Citigroup Global Markets Mauritius featured among the anchor investors, according to a circular uploaded on the BSE website.
The company, headquartered in Bangaluru, is engaged in producing biofuels such as 1G ethanol, Compressed Biogas (CBG), Fermented Organic Manure (FOM) which are being used as alternatives to the traditional biofuels.
In the near future, the company is further expected to venture into Second Generation (2G) ethanol, Sustainable Aviation Fuel (SAF), Biofuels Dispensing Stations and Green Hydrogen with the Government’s increased push towards the use of non-fossil fuel vehicles.
TruAlt has an installed ethanol production capacity of 2,000 KLPD (kilo litres per day) and commands about 3.6% market share in India’s ethanol market, as per the reports.
The company operates within the government’s broader policy framework that promotes ethanol blending in petrol, with the national target set at 20% by 2025–26, thereby significantly influencing biofuel-producing companies. The company’s operations rely primarily on feedstocks such as sugarcane, broken rice, and maize to produce ethanol.
Additionally, since the company’s performance is closely linked to the Union government’s ethanol blending programme, any delay, modification, or reversal in blending mandates, or changes to the fixed procurement pricing policy for ethanol derived from sugar or grain feedstocks, could impact revenue growth.
Experts have ruled out that ethanol producing companies like TruAlt could face margin compression if procurement prices are not periodically adjusted in line with input cost inflation.
On the valuation front, TruAlt’s stock is listed at an 11% premium over its issue price. At the listing level, the company’s forward price-to-earnings (P/E) ratio stood at approximately 39 times, which is higher than the sector average.
Nonetheless, analysts suggest that investors are factoring in the expected expansion of ethanol demand which is projected to nearly double by 2026 as a key driver of future earnings growth.
Image Source: TruAlt Bioenergy
Also read: TruAlt Bioenergy, GAIL (India) JV to develop network of Compressed Bio-Gas Plants
