TruAlt Bioenergy IPO

TruAlt Bioenergy Limited is among India's largest integrated biofuels manufacturers, well-placed within the renewable energy industry. The company boasts a record of being India's largest ethanol manufacturer at an installed capacity of 2,000 kilo litres per day (KLPD) and operational capacity of 1,800 KLPD as of March 31, 2025. This is equivalent to a market share of 3.6% of India's ethanol production capacity.

The company operates five distillery units in Karnataka, with four currently operational and a fifth established as a greenfield project. These five units are capable of producing ethanol from molasses and sugarcane syrup, with a large share of production being fungible to dual-feed operations. TruAlt plans to convert 1,300 KLPD of capacity into dual-feed units for processing of spoiled food grains, excess rice, and maize to enable utilisation throughout the year and improved margins by FY26.

The company also manufactures extra neutral alcohol (ENA), which is commonly utilised in the liquor business, and sells by-products such as liquid CO₂ and dry ice, further diversifying its revenue. TruAlt Bioenergy is also developing robust capabilities in the compressed biogas (CBG) segment through its subsidiary Leafiniti Bioenergy. Leafiniti was one of the earliest CBG manufacturers under the Government of India's SATAT scheme and operates a 10.20 tonnes per day (TPD) CBG unit in Karnataka that also produces useful by-products like solid and liquid fermented organic manure. The firm has formed a strategic collaboration with GAIL, wherein up to 20 CBG units are to be set up in India, of which up to 49% stake is to be held by Leafiniti. The firm has also entered into MoUs with Sumitomo Corporation Asia & Oceania and major Japanese trading and gas players to increase its CBG and ethanol presence.

Raw material security is at the core of TruAlt's business. The promoter group has a sugarcane crushing capacity of 79,000 tonnes crushed per day (TCD), which guarantees a stable and voluminous supply of molasses, sugarcane juice, and bagasse. This integration gives TruAlt a clear edge over other ethanol manufacturers who rely extensively on volatile open-market procurement.

The Indian biogas market is expected to grow up to $2.25 billion in 2029, at a CAGR of 6.3% between 2022 and 2029, and the ethanol demand in India is expected to grow at a CAGR of 17.7% till FY26. Along with Ethanol, the Government of India is looking forward to exploring CBG as an addition in the biofuel mix of the country, such as with the Ethanol Blended Petrol (EBP) programme of 2003, aiming to promote the use of environmentally friendly alternative fuels. Incentives and schemes have been offered by the Government of India and the State Government of Karnataka, which provide impetus to the company’s operations, including several ethanol interest subvention schemes, exemptions on excise duty, production-linked incentives, central financial assistance, working capital subsidies, as well as key ethanol blending targets, which greatly give an advantage to the company.

The company's future strategies include diversifying the sources of ethanol production, focusing on increasing its CGB capabilities, commencing production of 2G ethanol and venturing into sustainable aviation fuel supply. It has entered into an MOU with Visolis Inc. to enter into a technology collaboration on a non-exclusive basis for SAF production, subject to completion of certain feasibility assessments.

Now, Trault Bioenergy Ltd is launching its initial public offering (IPO), which consists of a fresh issue of ₹750 crore and an offer for sale of ₹89.28. The total issue size of the IPO is ₹839.28 crore. Its shares will be listed on the NSE and BSE.