The offer for sale includes up to 18 lakh equity shares each by Dhraksayani Sangamesh Nirani and Sangamesh Rudrappa Nirani. Depending on the success of the pre-IPO placement, the fresh issue size could be reduced correspondingly.
According to the draft red herring prospectus (DRHP), INR 425 crore from the fresh issuance will fund working capital requirements. An additional INR 172.68 crore will be allocated for the establishment of multi-feed stock operations. The remaining funds will cover general corporate purposes.
TruAlt Bioenergy, based in Bengaluru, focuses on ethanol production with a daily production capacity of 1,400 kilolitres (KLPD). The company has plans to expand this capacity by an additional 600 KLPD spread across three locations, aiming for a total production capacity of 2,000 KLPD by October 2024.
TruAlt is also diversifying into second-generation (2G) ethanol production. It intends to use surplus bagasse, a byproduct of sugar production, as a raw material. The company plans to utilize 8,00,000 MT of bagasse from its promoter group companies to produce around 6 crore litres of 2G ethanol annually.
TruAlt's business heavily relies on the price and availability of raw materials such as sugar syrup and molasses. To mitigate this dependence on seasonal resources, the company is shifting focus towards producing grain-based ethanol. This strategy aims to control material costs, optimize revenue, and ensure consistent ethanol production.
TruAlt Bioenergy reported a revenue of INR 1,223.40 crore and a profit after tax of INR 31.81 crore for FY24.
DAM Capital Advisors and SBI Capital Markets are acting as the book-running lead managers for the company's IPO.
(Source-PTI)
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