TruAlt Bioenergy Ltd, a leading biofuel producer, has submitted preliminary papers to the capital markets regulator Sebi to raise funds through an initial public offering (IPO).
The IPO will include a fresh issuance of equity shares valued at Rs 750 crore and an offer for sale (OFS) of up to 36 lakh equity shares by the promoters, as outlined in the draft red herring prospectus (DRHP).
The OFS consists of up to 18 lakh equity shares each by Dhraksayani Sangamesh Nirani and Sangamesh Rudrappa Nirani. As per reports, the company may consider raising Rs 150 crore under the pre-IPO placement round. If such placement is completed, the fresh issue size will be reduced.
Of the funds raised from the fresh issuance, Rs 425 crore will be allocated to working capital needs, Rs 172.68 crore for establishing multi-feedstock operations, and the remaining will be used for general corporate purposes.
TruAlt Bioenergy is one of India’s largest biofuels producers, strategically positioned as a prominent and diversified player in the Indian biofuels industry, primarily in the production of Ethanol. Company hold the distinction of being the largest Ethanol producer in India based on installed capacity. At present, company has the largest market share in terms of Ethanol production capacity. Company is also one of the first producers of CBG under the Sustainable Alternative Towards Affordable Transportation scheme introduced by the Government of India in 2018.
