Sula Vineyards’ IPO Subscription Day 1: Sula Vineyards’ Rs 960 crore Initial Public Offer (IPO) opens for subscription on Monday, December 12. The public issue will remain open for bidding till 14th December 2022. India’s largest wine producer and seller has fixed price band of the public issue at Rs 340 to Rs 357 apiece.
The public issue with a face value of Rs 2 per equity share is a pure offer-for-sale (OFS), including up to 2,69,00,530 equity shares, by the existing shareholders and promoters of the company.
Sula Vineyards IPO: Important Dates
Ahead of the IPO, anchor investors will be allowed to bid in Sula Vineyards on 9 December. The company is expected to start crediting shares to allotees on 21 December and the stock may debut on exchanges on 22 December.
Sula Vineyards IPO: Lot Size
Investors can bid for a minimum of 42 equity shares and in multiples of 42 equity shares thereafter.
Sula Vineyards IPO: Shareholders
Promoter Rajeev Samant with other selling shareholders, including Cofintra SA, Haystack Investments, Saama Capital III, SWIP Holdings, Verlinvest France SA, Verlinvest SA and others, will participate in the OFS.
Sula Vineyards IPO: Financials
For the year ended on March 31, 2022, the company reported a total revenue of Rs 456.7 crore with a net profit of Rs 52.14 crore, which was Rs 421.53 crore and Rs 3.01 crore in the year-ago period.Sula Vineyards’ bottomline stood at Rs 30.51 crore with total revenue of Rs 225.76 crore for the period ended on September 30, 2022.
Kotak Investment Banking, CLSA and IIFL Securities are the book running managers to the IPO and KFin Technologies Limited is the registrar to the offer. Law firms Shardul Amarchand Mangaldas and Trilegal are the legal advisors, as per the draft papers filed with SEBI.
Sula Vineyards IPO: GMP
As per market observers, Sula Vineyards shares are available at a premium (GMP) of Rs 40 in the grey market. On Sunday, Sula Vineyards IPO GMP was Rs 34 which means Sula Vineyards share price has surged Rs 6 in the grey market today.
Sula Vineyards IPO: Share Allotment Status
Those who would bid for the issue can check the subscription status on the online portal of KFin Technologies, the registrar of the IPO.
About Sula Vineyards
The Nashik-based wine maker has been recognised as the market leader across wine variants, including red, white and sparkling wines. The firm distributes wines under a bouquet of popular brands like Sula, its flagship brand, besides other popular brands like RASA, Dindori, The Source, Satori, Madera & Dia.
Sula has been backed by various private equity funds and institutional investors, including Verlinvest, Everstone Capital, Visvires, Saama Capital, and DSG Consumer Partners.The distribution platform of the company included over 47 distributors, 10 corporations, 23 licensed resellers, 7 company depots, 4 defence units and over 23,000 points of sale as of March 31, 2022.
Should You Invest?
On whether one should apply for the public issue or not, Choice Broking report says, “The IPO is coming with strong growth prospect and valuation comfort for investors. Considering the lower wine penetration in the domestic market and expanding demographic factors like rising per capita income and expanding target population, we believe the domestic wine market is on the cusp of exponential growth. Sula being the largest producer & seller of wine is well placed to capture the future growth opportunities in the Indian wine market. Thus we assign a “SUBSCRIBE” rating for the issue.”
A note from the brokerage firm Swastika said, “This Issue of Sula Vineyard is coming at a P/E valuation of 54.67 which is lower than its peers, however, the issue is a complete offer for sale and low promoter holding is also a concern thus we recommend subscribe rating to this IPO only for high-risk Investors”.
Sharekhan by BNP Paribas sees limited scope for listing gains for now and advises the investors to “look at the stock in case of weakness post its listing”.
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