Introduction- Trualt Bioenergy IPO
The Trualt Bioenergy IPO is one of the most anticipated offerings in 2025’s IPO calendar, shining a spotlight on India’s fast-growing ethanol and renewable energy sector. With an issue size of ₹839.28 crore, Trualt Bioenergy is bringing a mix of fresh issue and offer for sale (OFS) to the market, making it not just a fund-raising exercise but a strategic play on India’s biofuel roadmap.
As investors increasingly look toward green energy and sustainable businesses, the Trualt Bioenergy IPO offers an opportunity to participate in a company that is positioning itself as a leader in ethanol and biofuels.
Let’s break down the details, company background, financials, strengths and risks, valuations, GMP trends, and the overall investment outlook.
Trualt Bioenergy IPO Overview
Trualt Bioenergy IPO Details
| Particulars | Details |
|---|---|
| IPO Size | ₹839.28 crore |
| Fresh Issue | ₹750.00 crore (1.51 crore shares) |
| Offer for Sale | ₹89.28 crore (0.18 crore shares) |
| Total Shares | 1,69,20,967 shares |
| Price Band | ₹472 – ₹496 per share |
| Face Value | ₹10 per share |
| Lot Size | 30 shares |
| Minimum Retail Investment | ₹14,880 (30 shares at upper price) |
| Issue Type | Book-built IPO |
| Listing At | BSE & NSE |
| Lead Manager | Dam Capital Advisors Ltd. |
| Registrar | Bigshare Services Pvt. Ltd. |
| Pre-Issue Shares | 7,06,31,624 |
| Post-Issue Shares | 8,57,52,591 |
| IPO Document | RHP |
Key highlight: Around 90% of the issue (₹750 crore) is fresh capital, reflecting the company’s growth-oriented agenda, while the OFS portion is relatively small, allowing promoters to retain majority stake even post listing.
Trualt Bioenergy IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIBs | Not more than 50% |
| Retail Investors | Not less than 35% |
| NIIs | Not less than 15% |
This ensures a balanced allocation between institutions and retail investors, though QIBs will dominate the book build.
IPO Timeline (Tentative)
| Event | Date |
|---|---|
| IPO Open Date | September 25, 2025 |
| IPO Close Date | September 29, 2025 |
| Allotment | September 30, 2025 |
| Refunds Initiation | October 1, 2025 |
| Shares to Demat | October 1, 2025 |
| Tentative Listing Date | October 3, 2025 |
| UPI Cut-off Time | 5 PM, September 29, 2025 |
Objects of the Issue
| Purpose | Amount (₹ Cr) |
|---|---|
| Setting up multi-feed operations at TBL Unit 4 (300 KLPD, grains as raw material) | 150.68 |
| Funding working capital requirements | 425.00 |
| General corporate purposes | ~174.32 |
| Total | ₹750.00 crore |
Insight: Trualt is strategically investing in multi-feed flexibility, which will allow it to use grains in addition to molasses for ethanol production. This reduces raw material risk and enhances operating margins in volatile commodity markets.
Company Background- Trualt Bioenergy IPO
Founded in 2021, Trualt Bioenergy Ltd. has quickly emerged as a major ethanol producer in India, with an installed capacity of 2,000 KLPD, giving it around 3.6% market share in FY25.
The company operates five distillery units in Karnataka, four of which use molasses and syrup-based feedstock. Beyond ethanol, Trualt has expanded into compressed biogas (CBG), with its subsidiary Leafinity running a 10.20 TPD plant, and partnerships with global names like Sumitomo Corporation and a Japanese gas firm for capacity expansion.
Future ambitions include forays into second-generation ethanol, sustainable aviation fuel (SAF), and specialty biochemicals like Mevalonolactone (MVL) — all high-growth potential verticals.
Business model summary:
- Core revenue: Fuel ethanol for oil marketing companies (OMCs).
- Growth drivers: CBG, SAF, and advanced bio-chemicals.
- Strategic edge: Feedstock flexibility and government policy tailwinds from India’s E20 ethanol blending program.
Financial Performance- Trualt Bioenergy IPO
Restated Consolidated Financials
| (₹ Cr) | FY2025 | FY2024 |
|---|---|---|
| Total Assets | 3,029.73 | 2,419.08 |
| Total Income | 1,968.53 | 1,280.19 |
| EBITDA | 309.14 | 188.09 |
| Profit After Tax | 146.64 | 31.81 |
| Net Worth | 769.00 | 264.61 |
| Borrowings | 1,549.68 | 1,684.68 |
Analysis:
- Revenue grew 54% YoY, reflecting strong demand and capacity use.
- PAT jumped 361% YoY, highlighting margin expansion and operational leverage.
- Net worth almost tripled, strengthening the balance sheet.
- Borrowings remain high (₹1,549.68 cr), but debt has reduced slightly from FY24.
Key Performance Indicators (KPIs)
| KPI | Value |
|---|---|
| Market Cap (Post Issue) | ₹4,253.33 Cr |
| ROE | 28.27% |
| ROCE | 10.88% |
| Debt/Equity | 2.02 |
| RoNW | 19.07% |
| PAT Margin | 7.69% |
| EBITDA Margin | 16.20% |
| Price/Book | 4.56 |
| EPS Pre-Issue | ₹20.76 |
| EPS Post-Issue | ₹17.10 |
| P/E (Post-Issue) | 29.01x |
Valuation & Peer Comparison- Trualt Bioenergy IPO
| Company | EPS (₹) | NAV (₹) | P/E (x) | RoNW (%) |
|---|---|---|---|---|
| Trualt Bioenergy | 20.94 | 108.87 | 29.01 | 19.07 |
| Balrampur Chini Mills | 21.65 | 187.99 | 23.89 | 11.51 |
| Triveni Engg. | 10.88 | 144.34 | 33.07 | 7.66 |
| Dalmia Bharat Sugar | 47.78 | 399.62 | 7.75 | 11.96 |
Takeaway: Trualt commands a premium valuation (29x P/E) compared to most peers, justified by higher RoNW and growth rates. However, investors should weigh this against its debt profile.
Valuation View
- Post-issue P/E of 29x signals premium pricing vs peers.
- High ROE of 28% supports this valuation, though debt is a risk.
- Investors are paying up for policy tailwinds, strong growth, and diversification into CBG/SAF.
- Sustainability of margins and working capital efficiency will be key post-listing.
Strengths & Risks
| Strengths | Weaknesses / Risks |
|---|---|
| Largest installed ethanol capacity (2,000 KLPD). | High debt: Borrowings ₹1,549.68 cr, Debt/Equity ~2.0x. |
| Revenue & PAT growth (+54% and +361% YoY). | Raw material volatility (molasses, grain prices). |
| Multi-feed expansion reduces feedstock dependency. | Policy-driven demand; regulatory changes can impact margins. |
| Entry into CBG, SAF, and MVL — future revenue streams. | Execution risk in scaling new verticals. |
| Strong promoter background & industry relationships. | Premium valuation may limit upside if growth slows. |
Trualt Bioenergy IPO GMP
| Date | IPO Price | GMP | Est. Listing Price | Est. Gain |
|---|---|---|---|---|
| 24-Sep-2025 | ₹496 | ₹60 | ₹556 | ~12.1% |
Sentiment: GMP indicates moderate listing gains (~12%). However, GMP is unofficial and can change sharply based on subscription data.
Conclusion / Investment Outlook
The Trualt Bioenergy IPO is a bold bet on India’s renewable energy and ethanol blending story. Backed by strong revenue growth, expanding margins, and leadership in ethanol capacity, the company is well-positioned to benefit from structural demand.
However, risks remain: high leverage, dependence on raw material cycles, and execution challenges in scaling new ventures like SAF and MVL. Valuations are premium, meaning future performance must justify investor expectations.
🔹 Long-term investors: Can consider subscribing for exposure to the ethanol and biofuel theme.
🔹 Short-term investors: GMP suggests moderate listing gains (~12%), but not explosive.
🔹 Cautious investors: May prefer to watch how leverage and new projects evolve post-listing.
Final Word: If you believe in India’s biofuel transition, Trualt Bioenergy IPO offers a strategic entry point. Approach with a balanced allocation, keeping both growth potential and risks in mind.
FAQs on Trualt Bioenergy IPO
1. What is the Trualt Bioenergy IPO issue size?
The total IPO size is ₹839.28 crore, consisting of a fresh issue of ₹750 crore and an offer for sale (OFS) of ₹89.28 crore.
2. What is the price band for Trualt Bioenergy IPO?
The IPO price band is fixed at ₹472 – ₹496 per share.
3. What are the Trualt Bioenergy IPO dates?
The IPO will open on September 25, 2025, and close on September 29, 2025. The tentative listing date is October 3, 2025.
4. What is the minimum investment required in Trualt Bioenergy IPO?
Retail investors need to apply for at least 1 lot = 30 shares, costing ₹14,880 at the upper price band.
5. On which stock exchanges will Trualt Bioenergy IPO list?
The shares will be listed on both NSE and BSE.
6. Who are the lead managers and registrar for this IPO?
The IPO is managed by Dam Capital Advisors Ltd. and the registrar is Bigshare Services Pvt. Ltd.
7. What will the company use the IPO proceeds for?
Funds will be used for:
- Setting up a 300 KLPD multi-feed distillery unit (₹150.68 cr)
- Working capital requirements (₹425 cr)
- General corporate purposes (~₹174 cr)
8. How has Trualt Bioenergy performed financially?
In FY25, the company reported:
- Revenue: ₹1,968.53 crore (up 54% YoY)
- PAT: ₹146.64 crore (up 361% YoY)
- Net worth: ₹769 crore
This reflects robust growth and profitability improvement.
9. What is the Grey Market Premium (GMP) for Trualt Bioenergy IPO?
As of 24th September 2025, the GMP is around ₹60, implying an estimated 12% listing gain.
10. Should I invest in Trualt Bioenergy IPO?
The IPO offers exposure to India’s ethanol and renewable energy growth story. Strengths include high growth, feedstock flexibility, and expansion into CBG/SAF. Risks include high debt, raw material volatility, and premium valuation. Investors with a long-term view may consider subscribing, while short-term investors may expect moderate listing gains.
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