• Under the IPO, the company is offering equity shares for a total amount of ₹960.35 crore. The IPO is fully available for sale at a price band of ₹340 per share and ₹357 per share.
Sula Vineyards IPO: Retail investors have shown strong demand for the largest wine seller in India so far. Before the third day was over, the portion reserved for retail individuals got fully subscribed while high net worth investors also showed healthy appetite. Overall, 88% of the IPO has been subscribed. Wednesday is the last day of the Sula Vineyards IPO. In the gray market, the company traded at a premium of ₹17 per share today.
According to NSE data, at around 12.42 pm on Wednesday, the IPO received cumulative bids for 1,65,20,490 equity shares - subscription to 88% of the total 1,88,30,372 equity shares offered. The portion reserved for retail investors was fully subscribed 1.28 times, while the non-institutional investors aka HNI portion saw subscription of 72% against the reserved size. However, the Qualified Institutional Buyers (QIBs) portion was subscribed to 30% of the offered size.
Sula launched its IPO at ₹960.35 on December 12 and the issue is scheduled to close on December 14. Most experts recommend 'subscribing' to the IPO for listing gains. Sula is being seen as the first listing of its kind in the liquor market.
The company has already registered ₹288.10 crore from anchor investors on 9th December.
Under the IPO, the company is offering equity shares for a total amount of ₹960.35 crore. The IPO is fully available for sale at a price band of ₹340 per share and ₹357 per share. 50% of the total IPO size will be allotted for bidding to qualified institutional buyers (QIBs), while 15% will be reserved for non-institutional investors (NIIs) and the remaining 35% will be kept for retail individual investors.
Since the issue is an offer for sale, the company will not use the proceeds from the IPO. The selling shareholders in the IPO will receive the proceeds.
In the OFS, the selling shareholders are promoter Rajeev Samant, and investors such as Cofintra S.A, Haystack Investments, Saama Capital III, SWIP Holdings, Verlinvest S.A, and Verlinvest France S.A. Others are - Dinesh G. Vazirani, J.A. Moose, Karishma Singh, Major A.V. Pathak, Narayan Girdhar Chanrai, Ruta M. Samant, and Sanjay Narayandas Kriplani.
The equity shares of Sula will be listed on BSE and NSE post the IPO. With a GMP of ₹17 in the gray market, the IPO is likely to be listed on the exchanges at ₹374 (₹17 plus ₹370 per share) for now. However, the outlook for the listing price may change going forward as the gray market is unregulated.
Presently, Sula Vineyards has been a consistent market leader in the Indian wine industry. Sula has made remarkable progress in more than a decade. Presently, the company produces 56 different labels of wines across 13 district brands at its four owned and two leased production facilities located in Maharashtra and Karnataka.
In FY22, the company's revenue from operations was ₹4,539.16 million with a net sales margin1 of 69.83% and a profit after tax of ₹521.39 million in the same period. In the first half of FY23, the company's revenue stood at ₹2,240.68 million with a net sales margin of 74.32% and a profit after tax of ₹305.06 million.
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