Green Premium Fuels Investor Appetite: TruAlt Bioenergy IPO Closes Today with Strong Grey Market Listing Buzz

 The subscription window for TruAlt Bioenergy Ltd.’s ₹839.28 crore Initial Public Offering (IPO) closes today, September 29, 2025, with market participants eagerly watching its performance as a bellwether for India’s booming bioenergy sector. Despite not being fully subscribed heading into its final day, a notable fact for a public issue, the shares are commanding a significant “green premium” in the unofficial Grey Market, signaling strong investor conviction in the long-term thematic growth of renewable fuels.

The Biofuel Super-Cycle Barometer

TruAlt Bioenergy, which operates India’s largest ethanol production capacity at 2,000 Kilo Litres Per Day (KLPD), is uniquely positioned at the confluence of government mandate and clean energy demand. The company’s IPO is framed not just as a financial event, but as a direct play on India’s ambitious E-20 blending target (20% ethanol in petrol) and its broader net-zero commitments.

The Grey Market Premium (GMP) for the stock has remained robust, hovering around ₹95–₹109 over the upper end of the price band (₹496). This premium suggests a potential listing price of up to ₹605 per share, representing a premium of approximately 22%—a clear indicator that the market is placing a high value on the company’s strategic future.

This confidence is rooted in the company’s aggressive diversification beyond first-generation ethanol. TruAlt is actively pushing into Compressed Biogas (CBG) through its subsidiary, Leafinity, and exploring high-growth, next-generation verticals like Sustainable Aviation Fuel (SAF) and second-generation (2G) ethanol. This pivot aligns perfectly with global environmental, social, and governance (ESG) investing trends, effectively insulating the firm from reliance on a single feedstock or market.

A Four-Fold Jump in Profit Powers the Issue

The investor interest is backed by a solid financial runway. For the fiscal year ending March 2025, TruAlt reported a staggering four-fold jump in Profit After Tax (PAT) to ₹146.64 crore, with revenues climbing 54% year-on-year to nearly ₹1,968.53 crore. This exceptional growth rate—especially in a capital-intensive sector has earned the company a “Subscribe” rating from multiple brokerage houses.

The ₹750 crore fresh issue component of the IPO will be utilized to further cement this growth, specifically earmarking capital for multi-feedstock operations. This strategic upgrade will allow one of its key plants to utilize grains like maize and rice as raw materials, significantly reducing dependence on seasonal and volatile sugarcane-based feedstocks and thus promising greater margin stability.

While the overall subscription stood at 81% at the close of Day 2, with the Qualified Institutional Buyers (QIB) portion being substantially covered, the strong GMP indicates that institutional and High-Net-Worth Individuals (HNIs) are expected to make a strong push on the final day, ensuring a fully subscribed and possibly oversubscribed issue.

As TruAlt Bioenergy closes its subscription today, its IPO is set to become an immediate gauge of how willing the public market is to fund the pioneers of India’s essential transition to a cleaner energy mix. The listing, tentatively scheduled for October 3, 2025, on the BSE and NSE, will confirm whether the ‘Green Premium’ translates into concrete listing gains for investors.

Disclaimer:- The information provided in this article, including details on the Grey Market Premium (GMP) and expected listing price, is for informational purposes only. GMP is an unofficial indicator operating in an unregulated, informal market and should not be considered a reliable forecast of the official listing price. Investment decisions in Initial Public Offerings (IPOs) are subject to market risks, and investors should consult a qualified financial advisor and review the Red Herring Prospectus (RHP) before making any investment.

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