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Sula Vineyards IPO Subscription Day 2: India’s largest wine producer and seller Sula Vineyards’ initial public offer (IPO) hit the primary markets on Monday and the public issue will remain open for bidding till 14th December 2022. The leading wine producer’s IPO received bids for 52,34,670 shares against 1,88,30,372 shares on offer, as per NSE data.
Sula Vineyards IPO: Subscription Status
Retail investors and high networth individuals turned active on the first day itself, buying 48 and 18 percent of their quotas respectively.
But qualified institutional buyers are yet to put in their bids for the offer. They already have invested Rs 288.10 crore in the company via the anchor book.
Half of the offer has been reserved for qualified institutional buyers, 15 percent for high networth individuals (non-institutional investors), and the remaining 35 percent for retail investors.
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 the market observers, shares of Sula Vineyards Ltd are available at a premium of Rs 34 in grey market today, which means Sula Vineyards GMP today is Rs 34. On Sunday, Sula Vineyards IPO GMP was Rs 24 that means Sula Vineyards share price has surged Rs 10 in 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.
Sula Vineyards IPO: Financials
Over FY20-22, the company reported a 6.7% CAGR fall in the consolidated revenue, which stood at Rs. 453.9 cr in FY22. During the period total sales volume increased by 1.5 per cent CAGR, while lower focus on the distribution of third party brands led to 9.4 per cent CAGR fall in the blended realization. Wine business from the owned brands increased by 7.2 per cent CAGR, while business from third party brands declined by 53 per cent CAGR. Consequently, business contribution from the sales of owned brands increased from 63.6 per cent in FY20 to 83.9 per cent in FY22. Business from wine tourism vertical increased by 10.9 per cent CAGR, while its business contribution stood at 7.6 per cent in FY22.
Should You Invest?
“The stock is a pure play on the wine sector, which currently sits on a low base (less than 1 percent of alcoholic beverage industry) but is expected to surpass industry growth due to higher acceptability, affordability, perceived health benefits, etc,” said ICICI Direct which assigned a rating of subscribe with a long term horizon to the IPO as the industry is currently in a nascent stage and demand centres remain concentrated mainly in a few metros.
Giving ‘subscribe’ tag to the public issue, Swastika Investmart report says, “Sula vineyards Limited enjoys the benefit of high entry barriers in this industry. The company has the largest wine distribution network and sale presence. Its financial performance is also improving. This issue of Sula Vineyard is coming at a P/E valuation of 54.67 which is lower than its peers. The issue, however, 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.”
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
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