Trualt Bioenergy IPO

Company Overview:

Trualt Bioenergy Limited, incorporated in 2021, is a renewable energy company engaged in the production of biofuels, primarily ethanol. The company is among the largest ethanol producers in India with an installed capacity of 2,000 kilo litres per day (KLPD), holding a 3.6% market share in ethanol production capacity (FY25).

Its operations span ethanol production and compressed biogas (CBG) production. As of March 31, 2025, its subsidiary Leafinity operates one CBG plant with a capacity of 10.20 TPD. To further expand capacity, the company has signed MoUs with a Japanese Gas company and Sumitomo Corporation Asia & Oceania Pte. Ltd.

Trualt Bioenergy operates five distillery units in Karnataka, four of which run on molasses and syrup-based feedstocks. Looking ahead, the company plans to diversify into second-generation ethanol, sustainable aviation fuel (SAF), Mevalonolactone (MVL), and allied biochemicals.

Objects of the Issue:

1. Working Capital Requirements – ₹424.95 Cr

2. Setting up Multi-Feedstock Operations – ₹150.68 Cr

3. General Corporate Purposes – ₹174.37 Cr

Strengths:

• Largest Installed Ethanol Capacity – Leading position with 2,000 KLPD capacity.

• Diversified Renewable Portfolio – Presence across ethanol and CBG, with planned expansion into SAF and MVL.

• Strategic Collaborations – Partnerships with global leaders like Sumitomo Corporation enhance growth opportunities.

• Policy Alignment – Strong beneficiary of government focus on green energy and ethanol blending programs.

• Early Mover Advantage – Entry into new-age fuels like SAF and biochemicals positions the company ahead of peers.

• Geographic Concentration – Strong operational base in Karnataka with scope for further pan-India expansion.

• Innovation-Driven Growth – Technological tie-ups and R&D for sustainable fuels.

Risks:

• High Dependence on Ethanol – Majority of revenue is from ethanol sales.

• Logistics & Transportation Challenges – Supply chain and distribution risks in moving biofuels.

• Regulatory Dependence – Operations highly influenced by government policies and pricing regulations.

• Geographic Concentration Risk – All units are in Karnataka; regional disruptions may impact production.

• Operational Risks – Any equipment failure or labour unrest can halt production.

• Competitive Pressure – Increasing competition from other ethanol and renewable energy players.

• Feedstock Availability – Heavy reliance on molasses/syrup feedstocks; shortages can impact production.

Trualt Bioenergy IPO Key Details

• IPO Dates: 25 – 29 September 2025

• Price Band: ₹472 – ₹496 per share

• Lot Size: 30 Shares

• Total Issue Size: ₹839.28 Cr

• Retail Quota: 35%

• GMP (for reference only): ~15%

Allotment Link

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