TruAlt Bioenergy, the biofuels producers has submitted DRHP with SEBI to raise ₹750 crore from the fresh issue.
One of India’s leading biofuels producers, “TruAlt Bioenergy Limited, has filed a draft red herring prospectus with the market regulator, the Securities and Exchange Board of India, to float an Initial Public Offering (IPO). TruAlt Bioenergy IPO is a mix of fresh issue and offer for sale, whereby, the company is seeking to raise ₹750 crore from the fresh issue portion, while offer-for sale comprises 36 lakh shares.
Purpose of TruAlt Bioenergy IPO
Fresh Issue
- Funding capital expenditure towards setting up multi-feed stock operations to pave- the way for utilising grains as additional raw material in ethanol plants at TBL Unit 4 of 300 KLPD capacity
- Funding its working capital requirements
- General corporate purposes.
Offer for Sale
The proceeds raised from the offer-for-sale portion will not be received by the company. All funds will be taken over by the selling shareholders.
About TruAlt Bioenergy Limited
Incorporated in 2021, TruAlt Bioenergy Limited is one of India’s largest biofuels producers. It has strategically positioned itself as a prominent and diversified player in the biofuels industry, mainly in the Ethanol sector. As of March 31, 2024, the company hold the distinction of being the largest Ethanol producer in India based on installed capacity, with an aggregate production capacity of 1,400 kilo litres per day.
Through its Subsidiary, Leafiniti, the company is one of the first producers of CBG under the Sustainable Alternative Towards Affordable Transportation (“SATAT”) scheme introduced by the Government of India in 2018. Ethanol demand in India is expected to grow at a CAGR of 17.7% till FY2026. In FY2023, India’s Ethanol contribution to the EBP Program stood at approximately 548 crore litres, a figure projected to rise substantially to 1,016 crore litres by FY2026.
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