TruAlt Bioenergy shares debut nearly 11% higher at Rs 550

New Delhi: Shares of biofuels producer TruAlt Bioenergy Ltd on Friday listed with a premium of nearly 11 per cent against the issue price of Rs 496.

On the BSE, the stock listed at Rs 550, a jump of 10.88 per cent from the issue price.

Shares of the company started trading at Rs 545.40, a premium of 9.95 per cent on the NSE.

The company's market valuation stood at Rs 4,617.78 crore.

The initial share sale of TruAlt Bioenergy Ltd garnered 71.92 times subscription on the last day of offering on Monday.

The company's Rs 839.28 crore IPO had a price band of Rs 472-496 per share.

TruAlt's IPO was a combination of a fresh issue of shares worth Rs 750 crore and an offer-for-sale (OFS) of 18 lakh shares valued at Rs 89.28 crore at the upper end, by promoters.

Funds raised through the fresh issuance will be earmarked for setting up multi-feed stock operations, payment of debt and general corporate purposes.

Bengaluru-based TruAlt Bioenergy is one of the leading biofuels producers and is primarily into ethanol production. The company is diversifying into new areas like second-generation (2G) ethanol, utilising surplus bagasse -- a byproduct of sugar production -- as a raw material.

TruAlt's business performance is heavily influenced by the price and availability of raw materials, such as sugar syrup and molasses. To reduce reliance on these seasonal resources, the company plans to shift its focus towards producing grain-based ethanol.

This strategic move is expected to help control material costs, optimise revenue, and maintain consistent ethanol production.