TruAlt Bioenergy IPO: Key Details, Subscription Trends, and GMP Insights

TruAlt Bioenergy, a prominent player in India’s ethanol and biofuels sector, launched its initial public offering (IPO) with significant attention. The IPO size, pricing band, subscriber interest, and grey-market signals are all being closely watched by investors.

TruAlt Bioenergy IPO Structure & Price Band

• The total IPO size is about ₹839.28 crore, combining a fresh issue and an offer for sale (OFS) by promoters.
• The price band is fixed between ₹472 and ₹496 per share.
• A lot size is 30 shares, which makes the minimum investment by retail investors around ₹14,880 (at the upper end).
• The IPO is open for public subscription from September 25 to September 29, 2025, with the tentative listing date set for October 3, 2025.
• Use of proceeds includes capital expenditure for new multi-feedstock operations, strengthening working capital, and other general corporate purposes.

Anchor Investor Support

Ahead of the IPO opening, TruAlt raised about ₹252 crore from anchor investors. These anchor subscriptions help build confidence in the issue before retail and other segments start bidding.

Subscription Trends

Day 1:

• The subscription was relatively modest. The IPO was booked around 44 % on Day 1.
• Qualified Institutional Buyers (QIBs) showed more interest, with their portion ~86 % subscribed, while retail and non-institutional investor portions were much lower.

Day 2:

• Subscription picked up momentum. By the end of Day 2, the IPO had been subscribed about 81 % overall.
• The QIB portion remained strong (around 87 %), retail investors had ~79 %, and NIIs ~80 %.
• Some sources say subscription figures of 65 % were also reported, reflecting mixed real-time data, though the upward trend is consistent.

Day 3 (Final Day):

• The IPO was fully subscribed by day 3.
• By mid-morning on the last day, the total bids received had outpaced the total shares on offer by a factor of about 1.34×, indicating oversubscription due to strong interest from non-institutional investors.
• Grey market premiums (GMP) at this stage were pointing to a likely listing gain of ~19 % based on prevailing demand.

Grey Market Premium (GMP) & Listing Expectations

• From the outset, the IPO carried a GMP of about ₹80 over the upper limit of the issue price. This implied a ~16.13 % premium over ₹496, suggesting strong early investor sentiment.
• Over the IPO period, GMP remained relatively stable, supporting expectations of a robust listing.
• On the final day, the GMP expectations rose further, hinting at a potential listing gain of around 19 %.

Strengths & Risks for Investors

Strengths:

• TruAlt operates in the renewable energy / biofuel space, which aligns with India’s policy push toward sustainable and clean energy.
• The move toward multi-feedstock operations reduces dependency on seasonal inputs like sugarcane and molasses.
• Anchor investor participation and early GMP boost confidence in the issue.

Risks:

• The company’s performance is exposed to volatile raw material prices, which can impact margins.
• Its success depends partly on government policies (ethanol blending mandates, subsidies, etc.).
• The reliance on a strong subscription and positive market sentiment means short-term gains may be unpredictable.
• The GMP is an unregulated indicator and may not always translate fully into listing gains.

What Investors Should Watch

• Final allocation and allotment announcement (expected soon after IPO close).
• Actual listing price on exchanges and how it compares to GMP expectations.
• Medium- to long-term operational execution, including how well TruAlt transitions to multi-feedstock and controls costs.
• Policy developments and government direction in the biofuels sector.