IPO closes on 29 Sep'25
Trualt Bioenergy Ltd
Minimum Investment
₹ 14,880 / 30 shares
Our Verdict:
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- Trualt Bioenergy Ltd (TBL) has rapidly scaled into one of India’s largest ethanol producers, delivering strong revenue growth and healthy margins despite being a relatively young player. Its financial track record highlights both efficiency and scale.
- On valuations, the stock appears fully priced at a P/E multiple of ~24x.
- Looking ahead, TBL is preparing to diversify its portfolio. It plans to enter the 2G ethanol space by utilizing surplus bagasse, a by-product of sugar manufacturing.
- In addition, the company is moving up the value chain by exploring Sustainable Aviation Fuel (SAF). For this, it has signed a process license agreement with UOP LLC for ethanol-to-jet technology and intends to set up a facility with an annual capacity of 10 crore litres.
- These strategic expansions position TBL as more than an ethanol producer—evolving into a multi-pronged green energy company aligned with India’s biofuel policy push. That said, these forward-looking initiatives carry inherent execution risks, such as delays and cost overruns.
- While short-term performance may remain influenced by market sentiment, the company’s long-term prospects look attractive, making the offering a compelling opportunity for investors with a patient horizon.
- Although the initial listing may be influenced by the prevailing market sentiment, the company’s solid growth trajectory and diversification plans make it an attractive bet for long-term investors.
About the company
Founded in
31 Mar'21
Managing director
Vijaykumar Nirani
- TBL is among India’s largest biofuels producers, with an installed capacity of 2,000 KLPD. The company currently operates across two key verticals—ethanol and compressed biogas (CBG)—while also manufacturing extra neutral alcohol (ENA).
- TBL’s ethanol production process generates valuable by-products such as dry ice and liquid carbon dioxide. These not only provide additional revenue streams but also strengthen its positioning as an integrated renewable fuels and allied products company.
- In addition, through its subsidiary, Leafiniti Bioenergy Pvt Ltd, TBL has expanded into CBG production, further diversifying its clean energy portfolio.
STRENGTHS
- Market Leader: TBL stands as India’s largest ethanol producer, with an impressive aggregate production capacity of 1,800 KLPD across multiple distilleries.
- Exceptional Growth: From FY23 to FY25, TBL achieved remarkable growth, with operating revenue expanding at a 58% CAGR, EBITDA soaring by 72% and net profit increasing by 103%.
- Margin Improvement: TBL has successfully enhanced its margins, with net margins rising from 4.65% in FY23 to 7.69% in FY25 and EBITDA margin improving from 13.78% to 16.20%.
- Strong Return Ratios: TBL demonstrates solid financial returns, achieving a Return on Equity (ROE) of 28.27% and a Return on Capital Employed (ROCE) of 10.88% in FY25—the highest among its listed peers.
RISK FACTORS
- Limited Track Record: TBL commenced ethanol production only in September 2022. Although it generated Rs 1,907 crore in revenue with a healthy EBITDA margin in FY25, the sharp financial growth over a short period makes it difficult to gauge the long-term sustainability and consistency of operations.
- High Business Concentration: TBL’s performance is heavily reliant on ethanol sales, an industry marked by intense competition from sugar mills, distilleries and other ethanol manufacturers.
- Cash Flow Pressures: TBL has reported negative cash flow from investing activities for the past three fiscal years. If this trend persists, it could weigh on the company’s financial flexibility and overall stability.
- Regulatory Dependence: Ethanol blending and CBG demand are policy-driven. Any rollback or delay in government mandates could materially affect growth prospects.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 839.28 crore
Fresh Issue
₹ 750 crore
OFS
₹ 89.28 crore
Price range
₹ 472 - 496
Lot size
30 shares
Issue Objective
The net proceeds from the fresh issue will be utilized for the following purposes:
- Establishing a multi-feed stock operation (300 KLPD capacity) to enable the use of grains as an additional raw material in the ethanol plant;
- Meeting the company’s working capital requirements; and
- General corporate purposes.
Dates
Bidding open
25 Sep'25
Bidding close
29 Sep'25
Allotment date
30 Sep'25
Refund date
1 Oct'25
Listing
3 Oct'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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