TruAlt Bioenergy IPO: Should You Apply to India’s Ethanol Growth Story?

TruAlt Bioenergy Limited, India’s largest ethanol producer by capacity, has launched its ₹839.28 crore IPO on September 25, 2025. The issue combines a fresh issue of ₹750 crore and an Offer for Sale (OFS) worth ₹89.28 crore. The price band is fixed at ₹472-₹496 per share, with investors applying in lots of 30 shares.

As of September 24, the GMP stood at ₹80, signaling a 16% gain over the upper band. This shows healthy demand, though not euphoric. In this blog, we break down the company’s business model, IPO objectives, strengths and risks, valuation, peer comparisons, industry outlook and finally, what investors should be mindful of before making a decision.

IPO Overview

• IPO Date: September 25 to September 29, 2025
• Total Issue Size: ₹839.28 crore
• Price Band: ₹472 to ₹496 per share
• Lot Size: 30 Shares
• Tentative Allotment Date: September 30, 2025
• Listing Date: October 3, 2025 (Tentative)
• GMP: The GMP for TruAlt Bioenergy IPO is ₹80, reflecting a 16% gain over the issue price, according to Chittorgarh.com (as of September 25).
  Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

What Does TruAlt Bioenergy Do?

TruAlt Bioenergy is in the green energy space, primarily making biofuels with ethanol at its core. Ethanol is simply a type of alcohol blended with petrol to reduce crude oil imports. TruAlt sells ethanol mainly to public Oil Marketing Companies (like Indian Oil, Bharat Petroleum, and HPCL) as part of India’s national blending program.

The company runs five distillery units in Karnataka, using feedstock like sugarcane juice and molasses to make ethanol. It is expanding into maize and surplus rice-based ethanol to avoid seasonal dependence on sugar. Alongside ethanol, it produces related products like Extra Neutral Alcohol (used in liquor), liquid CO2, and dry ice. Through its subsidiary, Leafiniti Bioenergy, it also produces compressed biogas (CBG).

Objectives of the IPO

The IPO funds will be used for three main purposes:

• ₹150.68 crore for CapEx - converting one distillery into a multi-feed unit that can switch between sugarcane and grain feedstocks.
• ₹425 crore for working capital - to buy and store raw material (molasses, sugarcane juice, grains) and keep plants running year-round.
• Balance funds for general corporate purposes - like brand building, marketing, business development, and contingencies.

Strengths:

• Largest ethanol player in India: Installed capacity of 2,000 KLPD (1,800 KLPD operational), giving it an edge in volume.
• Strong revenue and profits: FY25 revenue at ₹1,907 crore and profit of ₹146.6 crore, a solid turnaround in just four years since incorporation.
• High return for investors: RoE of 28.27% in FY25, meaning the company generated ₹28 profit for every ₹100 invested by shareholders.
• Better margins than peers: EBITDA margin at 16.2% vs 7-13% peer range.
• Efficient operations: Working capital days at only 26 vs industry average of 200+ days.
• Future-ready strategy: Plans to scale CBG, sustainable aviation fuel (SAF), and biofuel retail stations.

Risks:

• Concentration of customers: 99.8% of sales in FY25 came from just 10 customers (mostly OMCs). Losing even one would hurt badly.
• High debt levels: Net debt-to-equity at 1.82x, making it more exposed compared to peers who are below 1x.
• Low capacity utilization: Only 45% in FY25 vs peer range of 68-77%.
• Seasonal dependence: Sugarcane molasses supply is seasonal, pushing prices up in the off-season. Weather disruptions could add risk.
• Related-party deals: Over ₹1,181 crore of transactions in FY25 happened with promoter-linked entities.
• Geographic risk: All units are concentrated in Bagalkot, Karnataka-leaving it vulnerable to local disruptions.

For detailed information, visit TruAlt Bioenergy’s IPO page.

Peer Comparison

The company competes with Balrampur Chini Mills, Triveni Engineering, and Dalmia Bharat Sugar.

• TruAlt leads in capacity (1,800 KLPD) vs 1,050 for Balrampur and 860 for Triveni.
• TruAlt has highest EBITDA margin (16.2%) beating Balrampur (13.65%), Triveni (6.99%), and Dalmia Sugar (12.5%).
• TruAlt’s RoE is 28.3%, way ahead of peers like Balrampur (12.1%) and Triveni (7.9%).
• TruAlt beats peers in working capital efficiency (26 days vs 200+ for peers).
• But, TruAlt lags peers in scale of revenue (₹1,907 crore vs ₹5,400-6,800 crore for bigger sugar players).
• Its debt levels (1.82x) are the highest in the sector, increasing risk.
• Low capacity utilization (45%) hurts efficiency, compared to 70%+ at peers.

Source: RHP, internal calculation

IPO Valuation

At the upper price of ₹496, TruAlt commands a post-IPO market cap of ₹4,253 crore. The P/E ratio based on FY25 earnings is 29x, higher than peers (Balrampur 23.9x, Triveni 33x, Dalmia 7.7x). On RoE and margins, TruAlt looks superior and appears to deserve some premium, but the higher debt and low utilization remain red flags.

Disclaimer: The P/E ratio here is calculated using the company’s post-IPO equity and its most recent FY25 net profits at the upper end of the price band.

Who Leads TruAlt Bioenergy?

The company is led by its promoter family-the Niranis. Vijaykumar Murugesh Nirani, founder and Managing Director, studied business at James Cook University and has been an industrialist for nine years. He also directs its subsidiary, Leafiniti Bioenergy. His younger brother, Vishal Nirani, serves as Executive Director with six years of operational experience. Sushmitha Vijaykumar Nirani, a non-executive director, brings an engineering background to the board.

The Chairperson, Y.B.R. Ramakrishna, is a seasoned biofuel expert who advises the Ministry of Petroleum. Supporting them is Anand Kishore (CFO), formerly at leading banks, who joined in 2024 and has 15 years of experience in finance. Deepak Kumar Gulati, the Company Secretary, has over 16 years of compliance experience. The leadership team combines new-generation promoters with seasoned professionals, bridging entrepreneurial drive and institutional discipline.

The Money Makers from the IPO

The OFS totals ₹89.28 crore, entirely by promoter group members. Dhraksayani Sangamesh Nirani is selling 9,00,000 shares, worth about ₹44.64 crore, realizing a remarkable 31x return on her investment cost of ₹15.96 per share. Similarly, Sangamesh Rudrappa Nirani is selling another 9,00,000 shares for the same ₹44.64 crore, cashing out at 29x his cost of ₹17.08 per share.

While the amounts are modest compared to overall IPO size, the high multiples show the enormous wealth creation early backers have already locked in. Importantly, since proceeds go to these promoters, this part of the issue does not add fresh funds to the company.

Industry Outlook

India’s ethanol industry is on a strong footing. Demand is driven by the government’s Ethanol Blending Program, requiring petrol to be mixed with ethanol to reduce dependence on imported crude. The ethanol blending market in India is projected to grow from 828 crore litres in FY23 to 1,350 crore litres by FY26, at a CAGR of 17.7%. The government is also pushing compressed biogas (CBG) and sustainable aviation fuels (SAF), opening new growth segments for companies like TruAlt. However, challenges like reliance on seasonal crops, potential conflict with food supplies, and high customer concentration remain industry-wide risks.

Analyst View

The IPO positions TruAlt Bioenergy as a scaled leader in a fast-growing sector with clear government backing. Its financial metrics - high RoE, strong margins, and working capital efficiency - are ahead of peers. But investors should weigh its heavy debt load, customer concentration, and underutilized capacity carefully.

At a P/E of 29x, the company is asking for a premium valuation. Whether it is justified depends on the long-term success of its diversification into grain-based ethanol, compressed biogas, and SAF. The IPO may suit investors with a high-risk appetite looking to ride India’s energy shift, but cautious investors may want to wait for consistent performance before committing.

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2. Go to INDstocks → IPO, or just search “IPO”.
3. Tap on an IPO from the list of live IPOs.
4. View key details like price band, lot size, and dates.
5. Tap Apply Now and choose the number of lots.
6. Use INDpay UPI for instant mandate tracking.
7. Your funds will be blocked until the share allotment is finalized.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: TruAlt Bioenergy' RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.