Bengaluru-based TruAlt Bioenergy files draft papers with Sebi to launch IPO

TruAlt Bioenergy has filed its draft red herring prospectus (DHRP) with the capital markets regulator Securities and Exchange Board of India (Sebi) to launch its initial public offering (IPO). Bengaluru-based TruAlt Bioenergy is one of India's leading biofuel producers and among the first producers of CBG under the sustainable alternative towards affordable transportation (SATAT) scheme.
 

According to the DRHP, TruAlt Bioenergy is looking to raise Rs 750 crore via issue for equity shares, while its promoters Dhraksayani Sangamesh Nirani and Sangamesh Rudrappa Nirani will sell 36 lakh equity shares from their holding through an offer-for-sale (OFS) route.
 

The company, in consultation with the book-running lead managers, may consider a private placement, rights issue, preferential offer or any other method of specified securities, for an aggregate amount not exceeding Rs 150 crores as pre-IPO placement shall not exceed 20 per cent of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced.
 

The net proceeds from its fresh issuance shall be utilized towards funding the capital expenditure for setting- up multi-feed stock operations to pave- way for utilizing grains as an additional raw material; ethanol plant at TBL Unit 4 of 300 KLPD capacity; funding working capital requirements; and for general corporate purposes.
 

Incorporated in March 2021, TruAlt Bioenergy is recognized as India’s largest ethanol producer by installed capacity, with a daily production capacity of 1,400 kilolitres. TruAlt began operations in October 2022 after acquiring three distillery units in Karnataka. It aims to add 600 KLPD of ethanol capacity by October 2024, as part of the overall target of 2,000 KLPD.
 

TruAlt had invested Rs 142.78 crore in capital expenditures for capacity expansion, by March 31, 2024. The company's consolidated revenue from operations stood at Rs 1,223.40 crore in fiscal year 2023-24 and profit after tax (PAT) stood at Rs 31.81 crore for the year.
 

Not less than 75 per cent of the net offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15 per cent of the offer shall be available for allocation to non-institutional bidders, and not more than 10 per cent of the offer shall be available for allocation to retail individual bidders.
 

DAM Capital Advisors and SBI Capital Markets are the book-running lead managers and Bigshare Services is the registrar of the offer. The equity shares are proposed to be listed on BSE and NSE.