TruAlt Bioenergy shares list at 10% premium to issue price despite strong IPO subscription

Shares of TruAlt Bioenergy Ltd. made their stock market debut on Friday, October 3, after its three-day Initial Public Offering had received a strong response.

The stock began trading at ₹545.4 per share, which is a 10% premium in comparison to its issue price of ₹496.

TruAlt's ₹839 crore IPO was subscribed nearly 72 times the total number of shares on offer. Subscription was led by institutional investors, whose portion was subscribed nearly 160 times, while that for non-institutional investors was subscribed 99 times.

The portion reserved for retail investors was subscribed 11 times the total number of shares on offer during this three-day period.

TruAlt is one of the largest biofuels producers in the country, involved mainly in the production of Ethanol. The company currently has a 3.6% market share in ethanol production in financial year 2025.

The company has signed an MOU with Sumitomo Corporation Asia & Oceania Pte. Ltd. for potential collaboration in the bioenergy sector and also plans to explore additional sectors: second-generation ethanol, sustainable aviation fuel, Mevalonolactone (MVL), other allied biochemical products.

Promoter shareholding in TruAlt will now fall to 70.5% in comparison to the 88.2% they held before the IPO. Top clients of the company are mainly public sector Oil Marketing Companies (OMCs).

Reports from the unlisted market are indicating a Grey Market Premium (GMP) of ₹90 per share, which implies that the stock will list at a premium in comparison to its issue price of ₹496. However, it must be noted that these are speculative rates and the listing could happen at a price different in comparison to what the GMP suggests