Bengaluru-based TruAlt Bioenergy Ltd has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).
The company is a prominent producer of biofuel in India and was among the first to use the CBG program under the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative.
Issue details
The IPO is comprised of shares with a face value of ₹10 each, involving a combination of a fresh issuance of ₹750 crore and a offer for sale of up to 36 lakhs equity shares by the promoters group selling shareholders. The offer for sale includes a maximum of 18 lakh equity shares by Dhraksayani Sangamesh Nirani and a maximum of 18 lakh equity shares by Sangamesh Rudrappa Nirani.
The company will use the funds raised from its new offering, amounting to ₹172.68 crore, to finance capital expenses for establishing multi-feed stock operations. This will enable the utilisation of grains as an extra raw material in the ethanol plant at TBL Unit 4, which has a capacity of 300 kilolitres (KLPD). Additionally, ₹425 crore will be allocated to fulfill working capital needs, and for general corporate purposes.
The offer will be conducted through the book-building process, with at least 75% of the offer being available for allocation on a proportionate basis to qualified institutional buyers. No more than 15% of the offer will be available for allocation to non-institutional bidders, and no more than 10% of the offer will be available for allocation to retail individual bidders.
In collaboration with the lead managers handling the book-running, the company may explore options such as private placement, rights issue, preferential offer, or other specified methods for issuing securities, with a total amount not exceeding ₹150 crores. The Pre-IPO placement will be limited to 20% of the fresh issue size. Upon completion of such placement, the size of the fresh issue will be adjusted accordingly.
The book-running lead managers for the offering are DAM Capital Advisors Limited and SBI Capital Markets Limited, while Bigshare Services Private Limited is serving as the registrar for the offer.
Company details
In March 2021, Vijaykumar Murugesh Nirani led the establishment of TruAlt Bioenergy. The company is currently acknowledged as the biggest ethanol producer in India based on its installed capacity, boasting a daily production capability of 1,400 KLPD as of March 31, 2024. A CRISIL report highlights that for the fiscal year 2024, TruAlt held a 3.7% market share in ethanol production capacity. The equity sharesare proposedtobe listedon BSE and NSE.
TruAlt Bioenergy achieved a consolidated revenue of ₹1,223.40 crore from its operations in the fiscal year 2024, and the profit after tax amounted to ₹31.81 crore in fiscal 2024.
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