Bengaluru-based TruAlt Bioenergy Limited, one of India’s leading biofuel producers, and one of the first producers of CBG under the Sustainable Alternative Towards Affordable Transportation (“SATAT”) scheme has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise capital through an Initial Public Offering (IPO).
The IPO, with a face value of ₹10 each, is a mix of fresh issuance of Rs 750 crore and an offer for sale of up to 36 lakhs equity shares by promoters group selling shareholders. The offer for sale consists of up to 18 lakh equity shares by Dhraksayani Sangamesh Nirani, and up to 18 lakh equity shares by Sangamesh Rudrappa Nirani.
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% of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced.
The offer is being made through the book-building process, wherein not less than 75% of the offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15% of the offer shall be available for allocation to non-institutional bidders, and not more than 10% of the offer shall be available for allocation to retail individual bidders.
The proceeds from its fresh issuance to the extent of Rs 172.68 crore will be utilized for funding capital expenditure towards setting- up multi-feed stock operations to pave- way for utilizing grains as an additional raw material in ethanol plant at TBL Unit 4 of 300 KLPD capacity; Rs 425 crore for funding working capital requirements; and for general corporate purposes.
TruAlt Bioenergy was incorporated in March 2021 led by Vijaykumar Murugesh Nirani. As of March 31, 2024, the company is recognized as India’s largest ethanol producer by installed capacity, with a daily production capacity of 1,400 kilolitres (KLPD). A report by CRISIL indicates that TruAlt had a 3.7% market share in ethanol production capacity for the fiscal year 2024.
DAM Capital Advisors Limited and SBI Capital Markets Limited are the book-running lead managers and Bigshare Services Private Limited is the registrar of the offer. The equity shares are proposed to be listed on BSE and NSE.
