Trualt Bioenergy Makes Strong Debut with 8.16% Premium, Lists at ₹536.45 Against Exceptional Subscription

Trualt Bioenergy Limited, India's largest ethanol producer by installed capacity, operating 2,000 KLPD across five distillery units in Karnataka, made a strong debut on BSE and NSE on October 3, 2025. After closing its IPO bidding between September 25-29, 2025, the company commenced trading with a 10.89% premium, opening at ₹550 but declining to ₹536.45 with gains of 8.16%.

Trualt Bioenergy Listing Details

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Trualt Bioenergy Limited launched its IPO at ₹496 per share with a minimum investment of 30 shares costing ₹14,880. The IPO received an exceptional response with a subscription of 75.02 times - retail investors at 11.50 times, NII at 103.04 times, and QIB at 165.16 times.

First-Day Trading Performance Outlook

• Listing Price: Trualt Bioenergy share price opened at ₹550, representing a premium of 10.89% from the issue price of ₹496, and settled at ₹536.45, delivering gains of 8.16% for investors, reflecting positive market sentiment towards the biofuel sector.

Growth Drivers and Challenges

Growth Drivers:

• Market Leadership Position: Largest ethanol producer in India with 2,000 KLPD installed capacity commanding 3.6% market share in FY25, five distillery units in Karnataka, and subsidiary Leafinity operating CBG production plant with 10.20 TPD capacity.
• Diversification Strategy: Strategic expansion into second-generation ethanol, sustainable aviation fuel, MVL and allied biochemicals, plus MoUs with Japanese gas company and Sumitomo Corporation for CBG capacity expansion, ensuring a growth pipeline.
• Exceptional Financial Performance: Outstanding PAT growth of 361% to ₹146.64 crore and revenue growth of 54% to ₹1,968.53 crore in FY25, healthy ROE of 28.27%, and positioned to capture favourable industry tailwinds from government biofuel policies.

Challenges:

• Extremely High Leverage: Alarming debt-to-equity ratio of 2.02, indicating substantial financial leverage requiring careful debt management and potential strain on cash flows amid working capital-intensive biofuel production operations.
• Aggressive Valuation Concerns: Post-issue P/E of 29.01x and price-to-book value of 4.56x reflecting premium valuation despite growth potential, with issue appearing aggressively priced, discounting all near-term positives requiring sustained execution.

Utilisation of IPO Proceeds

• Multi-Feedstock Operations: ₹150.68 crore for capital expenditure towards setting up multi-feedstock operations at TBL Unit 4 of 300 KLPD capacity, enabling utilisation of grains as additional raw material, diversifying feedstock base.
• Working Capital Requirements: ₹425.00 crore for funding working capital requirements supporting inventory management, feedstock procurement, and operational scale-up across five distillery units and expansion initiatives.
• General Corporate Purposes: ₹81.36 crore supporting business operations, strategic initiatives, diversification into new verticals, and expansion activities for sustained growth in the biofuel sector.

Financial Performance of Trualt Bioenergy

• Revenue: ₹1,968.53 crore for FY25, showing impressive growth of 54% from ₹1,280.19 crore in FY24, reflecting strong market demand and successful business scaling in ethanol production.
• Net Profit: ₹146.64 crore in FY25, representing exceptional growth of 361% from ₹31.81 crore in FY24, indicating substantial operational leverage and remarkable margin expansion benefits from capacity utilisation and favourable industry dynamics.
• Financial Metrics: Healthy ROE of 28.27%, moderate ROCE of 10.88%, elevated debt-to-equity ratio of 2.02, moderate PAT margin of 7.69%, solid EBITDA margin of 16.20%, and estimated market capitalisation of ₹4,600.20 crore.