New Delhi, October 3(HS): Shares of renewable fuel producer TrueAlt Bioenergy made a firm market debut today, rewarding its IPO investors with notable early gains. The company had priced its shares at ₹496 during the public issue.

On listing, the stock opened with a 10.88% premium at ₹550 on the BSE and with a 10% premium at ₹545.40 on the NSE. However, early profit booking soon led to some pressure, and by 12 p.m. the scrip was trading at ₹532.20.

IPO Response and Subscription Details

The company’s public offering, worth ₹839.28 crore, was open for subscription between September 25 and 29 and witnessed an overwhelming response. It was oversubscribed 75.02 times overall. The segment reserved for Qualified Institutional Buyers (QIBs) drew the strongest interest, at 165.16 times subscription. Non-Institutional Investors (NIIs) bid for their portion 103.04 times, while the retail allocation was oversubscribed 11.50 times.

The IPO comprised fresh equity shares worth ₹750 crore with a face value of ₹10 per share, totaling 1,51,20,967 new shares. In addition, 18 lakh shares valued at ₹89.28 crore were offered through the Offer for Sale route. The funds raised from the fresh issue are slated to be utilized for setting up multi-feedstock operations at the company’s ethanol plant, meeting working capital requirements, and fulfilling general corporate objectives.

Financial Performance

According to the company’s prospectus, revenue for FY 2024-25 surged 54% to ₹1,968.53 crore compared to ₹1,280.19 crore in FY 2023-24. Net profit also recorded a sharp jump of 361%, rising from ₹31.81 crore to ₹146.64 crore over the same period. Earnings before interest, tax, depreciation, and amortization (EBITDA) stood at ₹309.14 crore in FY 2024-25, up from ₹188.09 crore a year earlier.The company reported a decline in its debt levels as well. Total borrowings fell from ₹1,684.68 crore at the end of FY 2023-24 to ₹1,549.68 crore by the close of FY 2024-25.

Hindusthan Samachar / Jun Sarkar