The IPO of winemaker Sula Vineyards launched on Monday. What does GMP indicate before subscription opens?

 

• Sula Vineyards is heading to the stock market and coming up with its IPO next week

India's largest wine making company Sula Vineyards is heading to the stock market next week on Monday, December 12, 2022 with its initial public offer (IPO). The issue will close in 2019 with a price band of ₹340-357 per share. Wednesday, 14 December. At the upper end of the price band, the public issue is expected to fetch ₹960 crore.

The Sula Vineyards IPO will be an offer for sale (OFS) of a total of 26,900,532 equity shares by promoters, investors and other shareholders solely, which will include the sale of shares by Rajeev Suresh Samant, Founder and CEO of Sula Vineyards, as well as the Belgian investment. Firm Verlinvest and Cofintra SA.

“Sula is India's largest wine producer and seller by March 2022. Sula has posted impressive EBITDA and PAT growth, but revenue has remained stagnant. At the upper band, the issue is priced at a P/E of 52.57x, which looks pretty decent. Apart from this, certain factors such as lower net worth, low promoters holding and stricter regulations and changing laws for the sector could impact investors' interest, said Abhay Doshi, co-founder, UnlistedArena.

According to market observers, Sula Vineyards shares are trading at a premium (GMP) of ₹34 in the gray market today, lower than yesterday's ₹29. The shares of the company are expected to get listed on the major stock exchanges BSE and NSE on Thursday, December 22, 2022.

Named after Samanta's mother Sulabha, Sula planted its first vines in 1996, later building a sprawling resort and helping develop a new reputation for Nashik as the wine capital of India. Since then Sula has become India's largest wine producer and seller with a portfolio of 56 labels including 13 of its own brands and 20 international ones. Its net revenue grew 8% year-on-year to ₹457 crore in FY22. Samant, 55, plans to sell about five per cent of his 27% stake in the firm.

Sula Vineyards Limited is India's largest wine producer and seller as of March 31, 2022. The company distributes wines under a bouquet of popular brands including RASA, Dindori, Satori, with its flagship brand Sula being a category leader in wine in India.