TruAlt Bioenergy Files IPO Papers for Rs 750 Crore Fresh Issue

TruAlt Bioenergy, a leading biofuels producer in India, has submitted preliminary IPO documents to the Securities and Exchange Board of India (SEBI). This initial public offering (IPO) will include a fresh issue of shares worth Rs 750 crore, along with an offer-for-sale of 36 lakh shares by existing promoters.

In the offer-for-sale, Nirani will divest 18 lakh shares. Currently, promoters own 88.20% of the company, while the remaining 11.80% is held by public shareholders, including Chartered Finance and Leasing and Vikasa India EIF I Fund.

Before finalizing the Red Herring Prospectus with the Registrar of Companies, TruAlt may raise up to Rs 150 crore through private placements, rights issues, or preferential offers. If this pre-IPO placement occurs, the amount will be subtracted from the fresh issue proceeds.

The company plans to allocate Rs 172.68 crore from the new issue to enhance its multi-feed stock operations. This initiative will allow the use of grains as an additional raw material in ethanol production at its TBL Unit 4, which has a capacity of 300 KLPD. Additionally, Rs 425 crore will be designated for working capital needs, while the remaining funds will support general corporate activities.

TruAlt Bioenergy, India’s largest ethanol producer

As of March 2024, TruAlt Bioenergy is recognized as India’s largest ethanol producer by installed capacity, boasting an aggregate production capability of 1,400 kilo litres per day (KLPD). The company holds a significant market share in ethanol production, accounting for 3.7% in fiscal year 2024.

The company, which competes with Balrampur Chini Mills, Triveni Engineering, and Dalmia Bharat, aims to boost its ethanol production capacity by 600 KLPD across three locations, reaching a total capacity of 2,000 KLPD by October 2024. By March 2026, TruAlt plans to convert 1,000 KLPD of this capacity to dual-feed, enabling the production of ethanol from grain-based feedstocks or grains unsuitable for human consumption.

Expansion Plans

Moreover, TruAlt Bioenergy intends to expand further by establishing two greenfield units, adding 700 KLPD in capacity. This expansion will consist of a 500 KLPD unit and a 200 KLPD unit, bringing the total production capacity to 2,700 KLPD by fiscal year 2027.

Previously known as TruAlt Energy, the company reported a net profit of Rs 31.8 crore for the fiscal year ending March 2024, a decrease from Rs 35.5 crore in the prior year. Despite a rise in revenue and other positive operating metrics, the profit was affected by increased finance costs. Revenue from operations surged to Rs 1,223.4 crore from Rs 762.4 crore year-over-year. On the operational front, EBITDA (earnings before interest, tax, depreciation, and amortisation) increased by 79% to Rs 188 crore, with the margin expanding by 160 basis points to 15.4% compared to the previous fiscal year.