TruAlt Bioenergy share price: Stock lists at 10% premium on NSE; here's how much investors made per lot

TruAlt Bioenergy share price: Shares of biofuels producer TruAlt Bioenergy made a strong debut on the stock exchanges on Friday, October 3.

The stock listed at ₹545.4 apiece on the National Stock Exchange (NSE), reflecting a premium of 9.96% over the IPO issue price of ₹496.

On the BSE, it started trading at ₹550, up 10.89% from the issue price.

TruAlt Bioenergy share price: Here's how much investors made per lot

The company's IPO was a combination of a fresh issue worth ₹750 crore and an offer-for-sale of ₹89.28 crore by promoters. This takes the total issue size to ₹839.28 crore.

The fresh issue proceeds will be allocated to set up multi-feed stock operations, corporate general purposes and debt repayment.

The initial share sale got bids for 88,85,66,820 shares, which reflects a 71.92 times subscription as compared to the 1,23,55,424 shares on offer, as per the cumulative data on the NSE website.

Before the IPO, the company had raised ₹252 crore from anchor investors, including Tata Mutual Fund (MF), Bandhan MF, HDFC MF, Societe Generale, SBI General Insurance Company, and Citigroup Global Markets Mauritius. It allotted 50.76 lakh shares to 19 funds at ₹496 per share.

TruAlt Bioenergy is among India's leading biofuel producers and is primarily into the production of ethanol. The Bengaluru-based firm is diversifying into new areas such as second-generation (2G) ethanol, utilising surplus bagasse, a by-product of sugar production, as a raw material.

The Bengaluru-based company business performance is heavily influenced by availability and price of raw materials like sugar syrup and molasses. To minimise reliance on these seasonal resources, TruAlt Bioenergy intends to shift its focus towards producing grain-based ethanol.