TruAlt Bioenergy Limited — Important, 04-08-2026: Disclosure of material issue

TruAlt Bioenergy has announced a board meeting, where they approved the slump sale of its "Unit 5" undertaking in Karnataka for Rs. 171 crore.

**The Issue:** Unit 5 is a non-core asset that is not contributing to revenue and carries a significant term loan of Rs. 135 crore from IREDA, impacting profitability and cash flows.

**Possible Impact:** This divestment will help TruAlt reduce its debt burden, lower interest costs, improve liquidity, and strengthen its balance sheet. The proceeds will be used to repay debt and fund core business operations.

**Company's Response:** The company is strategically divesting this unit to enhance financial position and operational efficiency, focusing on its core business and high-growth opportunities. This move is expected to improve capital allocation and shareholder value.