TruAlt Bioenergy IPO Review: DRHP Papers, Fresh Issue, Offer-for-Sale

TruAlt Bioenergy is among the top companies in India working as biofuel producers. The company is among the top performers in the battle to become eco-friendly and reduce fossil fuel dependence. Dealing with the renewable energy sector, the company possesses a wide scope in the future. Thus, it recently filed its DRHP papers with SEBI for its further expansion and setup in multi-feed stock operations. TruAlt Bioenergy IPO consists of Rs. 750 Crores of fresh issue of shares with 36 Lakhs equity shares by promoters.

TruAlt Bioenergy IPO Review: DRHP Papers, Fresh Issue, Offer-for-Sale, Fund Allocation, And More

TruAlt Bioenergy IPO will soon be available in the market after the SEBI gives its approval. The company already filed its draft papers (DRHP) and is awaiting approval. It will offer a fresh issue of shares worth Rs. 750 Crores at a face value of Rs. 10 each. While the offer for sale will be for 36 Lakhs equity shares. The offer for sale includes two promoters Dhraksayani Sangamesh Birani and Sangamesh Rudrappa Nirani.

Both are selling 18 lakh equity shares. While the funds will be available to the company after its IPO opening, the company will use it in the following manner. It will be Rs. 172.68 Crores for the establishment of multi-feed stock operations. The main purpose of the establishment will be to add up an extra raw material in the ethanol plant at TBL unit 4. Thus, grains will be an extra raw material for the Unit 4 plant of 300 KLPD capacity.

The company will be using the rest of the amount which is Rs. 425 Crores for other general purposes. If we talk about the distribution of the IPO’s shares according to the investor’s categories, it will be as follows:

1. Qualified Institutional Buyers: 75%
2.  Non-Institutional Buyers: 15%
3. Retail Investors: 10%

Apart from the fresh issue and offer for sale, the company is looking forward to pre-IPO placement as well. It will not exceed 20% of the fresh issue. Thus, it will be a maximum of Rs. 150 Crores only. However, if any pre-IPO placement takes place, the company will adjust the fresh issue amount accordingly. However, it will be too early to say anything about it. The company has not given any clear direction to it. While the book running lead managers will be as follows:

1. DAM Capital Advisors Limited
2. SBI Capital Markets Limited

The company’s IPO registrar will be Bigshare Private Limited. Listing on both NSE and BSE, the company will attract more investors and funding contributing to its growth. TruAlt is already among the top Ethanol producers in India.