Ethanol maker TruAlt plans IPO roll out worth Rs 1000 crore

In the midst of the ongoing excitement in the IPO market, Bengaluru-based ethanol manufacturer TruAlt Bioenergy is gearing up to go public. The company is preparing an IPO valued at Rs 1000 crore and is expected to submit its draft proposal to SEBI soon.

According to reports, TruAlt Bioenergy has enlisted DAM Capital and SBI Capital as bankers for the IPO. The offering will include the issuance of fresh shares, and some existing shareholders may also reduce their stakes by selling shares, indicating a combination of fresh issue and offer for sale.

TruAlt Bioenergy, headquartered in Bengaluru, Karnataka, has seen rapid growth in recent years. Acuite Ratings & Research reports that the company’s revenue surged to Rs 1,225 crore in the last financial year ending March 31, 2024, up from Rs 768 crore the previous year, marking a 60 percent increase.

On The Growth Trajectory

TruAlt Bioenergy, established in March 2021 following the formulation of the National Biofuels Policy, began operations in October 2022. In just about 18 months, the company has surpassed Rs 1,000 crore in sales. The company operates three plants in Karnataka with a combined capacity to produce 20 lakh liters of ethanol per day.

The IPO, which may be worth Rs 1000 crore including both the fresh issue and the offer for sale, is expected to see the draft proposal submitted to SEBI within the next 2 to 3 weeks. Further details regarding TruAlt Bioenergy’s IPO are anticipated to be revealed by the end of this month.

In the beginning of the year, TruAlt held that it wants to expand its capacity by 2.7 lakh liters per day through a significant investment of Rs 600 crore for expanding the facilities to around 15 plants. The company has also formed a joint venture, named Leafinti Bioenergy Limited, involving a $72-million investment, with GAIL holding a 49% stake and TruAlt Bioenergy holding 51%.