TruAlt Bioenergy IPO: ₹81 GMP Sparks Investors — Should You Apply?

The TruAlt Bioenergy IPO has ignited the market with its impressive ₹81 Grey Market Premium (GMP), signaling a potential listing gain of approximately 16% over the issue price.

IPO Details at a Glance

• Issue Size: ₹839 crore

• Fresh Issue: ₹750 crore

• Offer for Sale: ₹89 crore

• Price Band: ₹472 – ₹496 per share

• Lot Size: 30 shares

• IPO Dates: September 25 – September 29, 2025

• Listing Date: October 3, 2025

• Minimum Investment: ₹14,880 at the upper price band IPO Watch

What Is the Grey Market Premium (GMP)?

The GMP reflects the unofficial premium at which a company's shares are trading in the grey market before listing. A GMP of ₹81 indicates that the stock is expected to list at approximately ₹577 (₹496 + ₹81), suggesting a potential listing gain of around 16% over the upper price band.

About TruAlt Bioenergy

TruAlt Bioenergy is one of India's largest ethanol producers, with a daily production capacity of 1,400 kilolitres. The company has recently been authorized by the Indian Ministry of Petroleum and Natural Gas as an Oil Marketing Company (OMC), enabling it to retail petrol and high-speed diesel. TruAlt plans to establish 100 retail fuel outlets, with operations commencing at eight outlets by next week, according to The Economic Times.

Financials and Valuation

While TruAlt Bioenergy's financials indicate robust growth, analysts have noted that the current valuations appear relatively expensive. The IPO is being viewed as a long-term investment opportunity rather than for short-term gains, due to its business potential and financial performance at INDmoney.

Should You Apply?

• Pros:
  
  

• Strong GMP indicating potential listing gains.

• Authorization as an OMC opens new revenue streams.

• Leading position in India's ethanol production sector.
  
  

• Cons:
  
  

• High valuations compared to industry peers.

• Moderate retail interest on Day 1.

• Long-term investment horizon recommended.

Final Verdict

The TruAlt Bioenergy IPO presents a promising opportunity for long-term investors, especially those with a positive outlook on the ethanol and fuel retail sectors. However, potential subscribers should consider the high valuations and moderate retail interest before making an investment decision.