Sula Vineyards’ IPO Will Open For Subscriptions On Monday – Here’s Everything You Need To Know

India’s largest wine producer and seller has raised Rs 280 crore from anchor investors ahead of its IPO.

Indian winemaker Sula Vineyards’ initial public offering (IPO) of Rs 960 crore will open for subscription on December 12. The show will end on December 14. The price range of the issue is Rs 340-357 per share.

India’s largest wine producer and seller has raised Rs 280 crore from anchor investors ahead of its IPO. Some of the major anchor investors include Abu Dhabi Investment Authority, Goldman Sachs, New York State Teachers’ Pension Systems, Morgan Stanley, among others.

Sula Vineyards IPO Details:

The problem opensDecember 12
Issue closedDecember 14
Issue Size (Rs. Crore)960
Nature of IPOFully SFO
Price range (Rs.)340 – 357
Lot size (shares)42

The IPO of Sula Vineyards will be done entirely through an offering of sale (OFS) where the promoters and other existing investors will sell nearly 2.7 crores of shares.

An offer to sell or OFS means that Sula Vineyards will not receive any proceeds from the sale of shares.

Some of the existing investors selling stocks include:

Last nameCategoryShares soldAverage purchase price per share (Rs.)
Rajeev SamantPromoter9,37,20341.38
Confintra S.A.Investor71,91,83558.64
Haystack Investments Ltd.Investor2,00,00096.46
Saama Capital III Ltd.Investor6,87,389170
Verlinvest SAInvestor71,91,83558.64
Verlinvest France SAInvestor65,79,565101.74

Along with these, eight other shareholders are selling their stake in the IPO.

About Sula Vineyards

As mentioned earlier, Sula Vineyards is India’s largest wine producer and seller, producing 56 different wine labels. The company operates in four price segments – Elite, Premium, Economy and Popular.

Sula Vineyards is synonymous with Indian wines and is considered a “category builder” in the segment. The company distributes wines under a bouquet of popular brands such as Sula, its flagship brand, in addition to other popular brands like RASA, Dindori, The Source, Satori, Madera & Dia.

The company has four owned and two leased production facilities located in Maharashtra and Karnataka.

As of January, it had a production capacity of over 13 million liters, of which 11 million liters are hosted in Nashik and the other 2 million liters in Karnataka.

According to the company’s Red Herring Prospectus (RHP), its market share in the 100% grape wine category grew from 33% in fiscal year 2009 to 52.6% in fiscal year 2021 on the Indian market.

The company operates in two business segments, the core being the wine business, which involves the production, import and distribution of wines and spirits. As of fiscal year 2022, this represented 92% of overall revenue. The other is the wine tourism activity, which represents the sale of services in wine residences and tasting rooms.

For FY2022, the company reported revenue of Rs 454 crore, which was higher than Rs 418 crore in FY2021, but lower than FY2020, in which it reported a turnover of Rs 522 crore.

Its gross margin increased from 53% to 65%, while the EBITDA margin also increased from 15% to 26%.

The net profit for the financial year 2022 amounted to Rs 52 crore, compared to Rs 3 crore for the financial year 2021 and a net loss of Rs 16 crore for the financial year 2020.

First post: STI


Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button