Sula Vineyards IPO – Business Overview: Mumbai-based wine producer and seller Sula Vineyards Limited is coming up with IPO later this year. The company has filed a draft red herring prospectus (DRHP) with SEBI for the initial public offering. Sula Vineyards is not offering any fresh issues in IPO. The total equity share on offer for sale is up to 26,900,530 with a face value of INR 2.
Sula Vineyard is one of the largest wine producers and sellers in India. The company has been consistently gaining market share from 33% in FY2009 in the 100% grapes wine category to 52% in value in FY2020 and further increased to 52.6% in FY2021. Sula Vineyards also claims to be the market leader in all four categories of wine products such as ‘Elite’, ‘Premium’, ‘Economy’, and ‘Popular’ wines. The company distributes wines under the brand name “Sula”, “RASA,” “Dindori”, “The source,” “Satori”, “Madera” & “Dia” with its flagship brand “Sula” being the “category creator” of wine in India. This was the first wine company in the country to use an Indian logo.
Suggested reading – Read the complete company insights here – “Sula Vineyards Company Profile – Key products, finance, management team, strategic insights”
Sula Vineyards IPO: Company Promoters
Rajeev Samant is the promoter, MD, and CEO of the company. He holds an aggregate of 22,858,619 Equity Shares, comprising 28.01% of the pre-Offer issued, subscribed, and paid-up Equity Share capital of the Company. He holds AB, MS, Economics, Industrial Engineering, and a Master’s degree, in Engineering/Industrial Management from Stanford University.
Karan Vasani is the Chief Winemaker & SVP – Vineyards and Winery Operations of the company. Chaitanya Kamal Rathi is the Chief Operating Officer of Sula Vineyards.
Sula Vineyards IPO – Financial analysis
Sula Vineyards’ total revenue declined from INR 5232 million in FY 2020 to INR 4567 million in FY 2022, as per the DRHP filed by the company. However, total expenses have also declined from INR 4727 million in FY 2020 to INR 3406 million in FY 2022. The company came into profit in FY2021 with INR 30 million. However, Sula vineyards limited was in a loss in FY2020 with INR 159 million. The company registered a profit of INR 521 million in FY 2022. As of March 31, 2022, the company had aggregate outstanding borrowings of INR 2,466.50 million, excluding deferred sales tax liabilities and including bank guarantees.
Read financial details of the company here – “Sula Vineyards Company Profile – Key products, finance, management team, strategic insights”
Sula Vineyards IPO price band and issue size
Sula Vineyards is coming up with an initial public offering with only an offer for sales. The offer for sale size is equity shares aggregating up to 25,546,186 Equity Shares with a face value of INR 2. The company will not receive any proceedings from this IPO.
Promoters and other investors are selling part of their respective equity shareholdings in the company. Promoter Rajeev Samant is selling Up to 1,171,504 Equity Shares in the offer for sale. Investors and other shareholders are selling up to 26,900,530 Equity Shares in the offer for sale.
Sula Vineyards is proposing its shares be listed on both the Stock Exchanges- BSE and NSE. Book Running Lead Managers of this IPO are Kotak Mahindra Capital Company Limited, CLSA India Private Limited, and IIFL Securities Limited. The registrar for this IPO is KFin Technologies Limited.
Utilization of Net Proceeds of Sula Vineyards IPO
The company will not get any proceeds from the Offer of Sula Vineyards IPO. All the proceeds of Sula Vineyards IPO will go to the Selling Shareholders. The company is planning to carry out the Offer for Sale of up to 26,900,530 Equity Shares. Sula Vineyards will only get the benefits of listing Equity Shares on the Stock Exchanges. This may also enhance our visibility and the brand image of the company.
Up to 50% of the offer shall be allotted on a proportionate basis to Qualified Institutional Buyers (“QIBs”, and such portion, the “QIB Portion”). Up to 60% of the QIB Portion is to allocate to Anchor Investors on a discretionary basis out of which at least one-third shall be reserved for allocation to domestic Mutual Funds only. About 15% of the Offer shall be available for allocation to Non-Institutional Bidders, of which one-third portion shall be reserved for applicants with an application size of more than INR 200,000 and up to INR 1,000,000. Up to 35% of the Offer shall be available for allocation to Retail Individual Bidders.
Peer Comparison for the company:
Sula Vineyards faces competition from both domestic and international players. If the government of India reduces import duty on wines, it will affect negatively this company’s performance.
The company does not have any direct competitors in the listed space. However, the company faces strong competition from domestic as well as from imported products. A few major domestic competitors are Indage Wines (Chateau Indage), Grover Vineyards, ND Wines, Vintage Wines, Fratelli, and York Winery.
Sula Vineyards IPO Details
| Sula Vineyards IPO Details | Details |
|---|---|
| Sula Vineyards IPO launch Date | Dec 12, 2022 to Dec 14, 2022 |
| Sula Vineyards IPO Price band | ₹340 to ₹357 per share |
| Sula Vineyards IPO Allotment date | Dec 19, 2022 |
| Refunds Initiation date | Dec 20, 2022 |
| Credit of Shares to Demat Account | Dec 21, 2022 |
| Listing Date | Dec 22, 2022 |
| Fresh Issue | Nil |
| Offer for Sale | 26,900,530 shares of ₹2 (aggregating up to ₹960.35 Cr) |
| Equity Shares outstanding prior to the Offer | 81,600,875 Equity Shares |
| Minimum bid (lot size) For Retail investors | 42 shares (Investment of ₹14,994) |
| Maximum bid (lot size) For Retail investors | 546 Share (Investment of ₹194,922) |
| Face Value | INR 2 per share |
| Listing on | BSE & NSE |
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Sula Vineyards IPO Allotment Status
Sula Vineyards IPO allotment will be available on KFin Technologies Limited’s website. To know your allotment status, get ready with your PAN number and click on this link.
Sula Vineyards IPO GMP
| Date | Sula Vineyards IPO GMP | IPO Price |
| 09-12-2022 | ₹35 | ₹340 ₹357 per share |
| 14-12-2022 | ₹0 | |
Sula Vineyards IPO Contact Details and Lead Managers
| Contact Details | Lead Managers |
| 901, Hubtown Solaris, N.S. Phadke Marg, Andheri (East), Mumbai 400 069 Maharashtra, India Phone: +91 22 6128 0606 cs@sulawines.com www.sulavineyards.com | 1. Kotak Mahindra Capital Company Limited 2. CLSA India Private Limited 3. IIFL Securities Limited |