Sula Vineyards IPO – Review, Bid, Size, Allotment, Subscription, GMP & RHP
Last Updated Date: Dec 22, 2022One of the largest and fastest-growing alcoholic beverage companies in India, Sula Vineyards, is coming up with an IPO to raise funds from the market. The Sula Vineyards IPO will be entirely an Offer for Sale. The company will not be offering any new equity shares to investors.
Some promoters and shareholders will be offloading their shareholding in the company through the Initial Public Offering (IPO).
Through this Sula Vineyards IPO review, we will study in detail the company and its IPO.
| Face Value | Rs 2 |
| Price Band | Rs.340 to Rs.357 |
| Listing At | BSE, NSE |
| Min. Order Quantity | 42 Shares |
| Listing Date | Dec 22, 2022 |
| Offer for Sale | 960.35 Cr. |
| Fresh Issue | – |
| IPO Size | 960.35 Cr. |
| Tick Size | 1 |
Sula Vineyards IPO Overview
Sula Vineyards IPO will be entirely an Offer for Sale for 25,546,186 Equity Shares. An Offer for Sale is where the shareholders of the issuer company offer their shares with the intention to lower down their holding in the company.
The shares already exist, and no fresh shares are issued. The ownership transfers from one holder to another.
About 14 investors of the company will be participating in the IPO and selling their shares.
Sula Vineyards IPO Important Dates
| Events | Date |
| IPO Opening Date | Dec 12, 2022 |
| IPO Closing Date | Dec 14, 2022 |
| Basis of Allotment Finalization | Dec 19, 2022 |
| Refunds Initiation | Dec 20, 2022 |
| Credit of Shares to Demat Account | Dec 21, 2022 |
| Share Listing Date | Dec 22, 2022 |
Sula Vineyards has very recently filed the preliminary papers with SEBI to seek its approval for the IPO launch. The company is preparing further to floor the IPO and list its shares on the stock exchanges.
The IPO is a mainline IPO, and the shares will be listed on NSE and BSE.
Sula Vineyards IPO Dates have not been finalized as of now, and the company will determine them according to the market conditions.
Sula Vineyards IPO Price, Size, Share Offerings
| Face Value | Rs.2 |
| Price Band | Rs.340 to Rs.357 |
| Offer for Sale | 960.35 Cr. |
| Fresh Issue | – |
| IPO Size | 960.35 Cr. |
Sula Vineyards IPO Size will be 25,546,186 Equity Shares in terms of quantity, and the company will discover the Sula Vineyards IPO Price and the selling shareholders in consultation with the Book Running Lead Managers (BRLMs). This process of price discovery is called Book Building Process.
The face value of the equity shares is Rs. 2 each.
Sula Vineyards IPO Grey Market Premium
| Date | GMP (Rs.) | Kostak Rate (Rs.) | Subject to Sauda (Rs.) |
| 22 Dec 2022 | Disc | NA | NA |
| 21 Dec 2022 | Disc | NA | NA |
| 20 Dec 2022 | Disc | NA | NA |
| 19 Dec 2022 | Disc | NA | NA |
| 17 Dec 2022 | Disc | NA | NA |
| 16 Dec 2022 | Disc | NA | NA |
| 15 Dec 2022 | Disc | NA | NA |
| 14 Dec 2022 | Rs 10 | NA | NA |
| 13 Dec 2022 | Rs 30 | NA | NA |
| 12 Dec 2022 | Rs 30 | NA | NA |
| 11 Dec 2022 | Rs 40 | NA | NA |
One of the aspects of an IPO is GMP. It is the amount paid for the trading in Grey Market. Grey Market is an unofficial trading market where the company’s shares are bid and offered before the share listing on the stock exchanges.
Sula Vineyards IPO GMP can drive the success of the IPO performance on the stock exchange. Participants observe the activities of Grey Market Premium closely and bid according to the prevailing price of the Grey Market.
Sula Vineyards IPO Subscription Status
| Day / Date | QIB | NII | RII | Total Subscription |
| 1st Day – 12th Dec | 0.00x | 0.18x | 0.48x | 0.28x |
| 2nd Day – 13th Dec | 0.00x | 0.45x | 0.99x | 0.59x |
| 3rd Day – 14th Dec | 0.30x | 0.56x | 1.23x | 0.82x |
| Shares Offered or Net Issue | 5,380,106 | 4,035,080 | 9,415,186 | 18,830,372 |
To subscribe to an IPO, every investor must have a PAN card, a Demat Account, a Bank account, and bidding details to bid in the IPO.
During the Subscription process, the issuer company makes an invitation to the public to bid for the subscription in the IPO.
Sula Vineyards IPO Subscription period will be the bid invite duration of the IPO.
Sula Vineyards IPO Allotment Status
Prior to the allotment of shares, the company finalizes the basis of allotment. It provides details on demand for IPO shares offered by the company once the basis of allotment has been determined.
Sula Vineyards IPO Allotment will take place after the subscription process. Once the company completes the allotment, the shares will get listed on the stock exchange.
Sula Vineyards IPO Live Performance
Check out the Sula Vineyards IPO Performance and fluctuations during the trading durations in a single click. Stay updated with the Sula Vineyards IPO Price anytime.
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Sula Vineyards – Company Review
The company was formally incorporated in 2003 as Nashik Vintners Limited. And it emerged as “Sula Vineyards Private Limited” in the year 2014.
It was converted from a private company to a public company in February 2022.
At the time of its formation, it was the first winery in Nashik. And today, it has become the most awarded and the top wine segment company in many parts of India. With their refined processes and techniques, they bestow the lovers of wine with the best taste they can find.
They are the category leader in the Indian Wine Industry with their high sales volume and value for over a decade.
Products or Services
Sula Vineyards offer a whole range of wines and spirits. Their wines are sold under the labels:
- RĀSĀ
- The Source
- Dindori Reserve
- Sula Classics
Along with the production and distribution of wines and spirits, the company also undertakes the sale of services from its operation of wine tourism venues, including tasting rooms and vineyard resorts.
The company is proud to be India’s largest wine producer and seller. It has attained this height of success with continuous hard work and efforts towards making its produce a preferred choice among its customers.
Promoters and Holding
The Promoter of Sula Vineyards is Rajeev Samant.
The management of the company comprises the following:
- Chetan Rameshchandra Desai, in the position of Chairman and Non-Executive Independent Director
- Rajeev Samant, in the position of Managing Director and Chief Executive Officer
- Alok Vajpeyi, in the position of Non-Executive Independent Director
- Sangeeta Pendurkar, in the position of Non-Executive Independent Director
- Arjun Anand, in the position of Non-Executive Nominee Director
- Roberto Italia, in the position of Non-Executive Nominee Director
- Karan Vasani, in the position of Chief Wine Maker and Senior Vice President
- Chaitanya Rathi, in the position of Chief Operating Officer
- Bittu Varghese, in the position of Chief Financial Officer
- Neeraj Sharma, in the position of Senior Vice President – Sales
- Monit Dhavale, in the position of Senior Vice President – Hospitality Business
- Ruchi Sathe, in the position of Company Secretary and Compliance Officer
Is Sula Vineyards good for Investment?
Sula Vineyards Limited is one of India’s finest wine-producing and marketing companies. They are also the fastest-growing company in the segment in Indian Market. The company has achieved an annual growth rate of 13.7% between the fiscal 2011 and 2021. And this growth rate makes them a top wine-selling firm.
The company makes revenue from wine manufacturing and services sales with their wine tourism.
Sula Vineyards Financial Statements
| Amount (in INR & Million) | |||
| 31-Mar-22 | 31-Mar-21 | Mar-20 | |
| Assets | 3,705.43 | 4,069.37 | 4,431.05 |
| Revenue | 4,567.00 | 4,215.32 | 5,232.11 |
| Expense | 3,406.29 | 3,570.20 | 4,727.18 |
| Profit After Tax | 521.39 | 30.14 | (159.40) |
The revenue of Sula Vineyards has shrunk slightly last two years, but despite that, the company posted an enlarging profit for the immediately preceding financial year.
The company’s total revenue for the years 2022, 2021, and 2020 were – Rs. 4,567.00 million, Rs. 4,215.32 million, and Rs. 5,232.11 million, respectively.
The company’s net profits for the years 2022, 2021, and 2020 were – Rs. 521.39 million, Rs. 30.14 million, and Rs. (159.40) million, respectively.
| Earnings per Equity Share (in Million) | |||
| 31-Mar-22 | 31-Mar-21 | Mar-20 | |
| Basic & Diluted | 6.79 | 0.40 | (2.09) |
The company’s EPS has shown a positive shift from Rs. 0.40 as of 31st March 2021 to Rs. 6.79 as of 31st March 2022. Prior to that, in 2020, the EPS was negative to Rs. (2.09).
Sula Vineyards IPO Review
Sula Vineyards IPO is completely an Offer for Sale for 25,546,186 Equity Shares by the selling shareholders.
The selling shareholders are Rajeev Samant, Cofintra S.A., Haystack Investments Limited, Saama Capital III, Ltd., SWIP Holdings Limited, Verlinvest S.A, Verlinvest France S.A, Dinesh G. Vazirani, J.A. Moos, Karishma Singh, Major A.V. Phatak (Retd.), Narain GirdharChanrai, Ruta M. Samant, and Sanjay Naraindas Kirpalani.
The company will not receive any proceeds from the IPO; the selling shareholders will be entitled to it.
The company will attain the listing benefits from the IPO, and it will give higher exposure to it. The IPO can help the company reach out to customers.
Sula Vineyards IPO Details
Here are few more details you need to know before investing in Sula Vineyards IPO –
Sula Vineyards IPO Issue Object
The Sula Vineyards has proposed diverse objectives for making the IPO offer and some of the objectives are:
- to carry out the Offer for Sale of up to 25,546,186 Equity Shares, aggregating up to ₹ [●] million by the Selling Shareholders; and
- achieve the benefits of listing the Equity Shares on the
Stock Exchanges.
Sula Vineyards IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- High barriers of entry;
- Established market leader in the Indian wine industry with the leading brand “Sula”;
- Largest wine producer in India with the widest and innovative product offering supported by an efficient production mechanism;
- Largest wine distribution network and sales presence;
- Secured supply of raw material with long term contracts exclusive to Sula;
- Leader and pioneer of the wine tourism business in India;
- Early adoption and focus on sustainability; and
- Experienced Board, qualified senior management team.
Quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-22 | 6.53 | 11.45 | 55.34 |
| 31-Mar-21 | 0.38 | 0.85 | – |
| Mar-20 | (2.01) | (4.60) | – |
Sula Vineyards IPO Lead Managers
Here are the list of Lead managers –
- Kotak Mahindra Capital Company Limited
- CLSA India Private Limited
- IIFL Securities Limited
Sula Vineyards IPO Registrar to offer
Check out the details of the registrar here –
KFin Technologies Limited
(Formerly known as KFin Technologies Private Limited)
Selenium, Tower B, Plot No 31 and 32, Financial District,
Nanakramguda, Serilingampally
Hyderabad, Rangareddi 500 032, Telangana, India
Tel: +91 40 6716 2222
E-mail: sula.ipo@kfintech.com
Investor grievance e-mail: einward.ris@kfintech.com
Website: www.kfintech.com
Contact person: M Murali Krishna
SEBI registration No.: INR000000221
Sula Vineyards IPO – Other Details
- Statutory Auditor – Walker Chandiok & Co. LLP
- Legal Counsel to the Company – Shardul Amarchand Mangaldas & Co
- Bankers to the Company – HDFC Bank Limited, Axis Bank Limited, Kotak Mahindra Bank Limited, and Saraswat Co-operative Bank Limited
Sula Vineyards IPO – Conclusion
As you see, the Sula Vineyards IPO is entirely an Offer for the Sale of equity shares by the company’s existing shareholders. The company has grown massively in the last one decade in terms of sales volume and value. In the last year, it made way higher profit as compared to the year previous to it.
So, from the financial and growth front, it is a good opportunity for investors to invest, though it is a share sale by the shareholders seeking the exit route through the IPO.
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Sula Vineyards IPO Review FAQs
Check out the FAQs on Sula Vineyards IPO –
What is the Issue Size of Sula Vineyards IPO?
The Company is making an initial public offer of 26,900,530 equity shares. They vividly portray the aspects of the issue in this article. You can check the stats on the fresh issue, Offer for sale, and net issue.
What is the Price band of Sula Vineyards IPO?
The price band for this particular IPO ranges between Rs.340 to Rs.357. As far as the face value of the share is of concern, it is Rs.2 per share.
What is the Sula Vineyards IPO Open Date?
The opening and closing dates for this IPO have been updated. The IPO is set to open on Dec 12, 2022, while the closing date is set at Dec 14, 2022.
What is the Sula Vineyards IPO Allotment Date?
They also have the news regarding the respective allotment dates of this IPO. Basis of Allotment finalization is on Dec 19, 2022, refund initiation is on Dec 20, 2022, credit of shares is on Dec 21, 2022, and share listing date is on Dec 22, 2022.
What is the Sula Vineyards IPO Listing Date?
Shares of this company shall be listed in the exchanges Dec 22, 2022. The date, when the listing would be done, is stagnant on Dec 22, 2022.
Who is the Registrar of Sula Vineyards IPO?
One of the reputed registrars is managing the issue of this IPO, i.e. KFin Technologies Limited. Their website will help you regarding the further information you are on the lookout for.
Who is the Promoter of Sula Vineyards IPO?
Here are the promoters of this IPO – Rajeev Samant. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
What is the GMP of Sula Vineyards IPO?
They have obtained the GMP of this IPO and it is Rs.Disc Further insights of Kostak rate and subject to sauda or SS are as well included in this report.
Is Sula Vineyards IPO good for Investment?
They have further provided the financial status of the company in this article, from the past few years. You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.
What is the PAT of Sula Vineyards Company?
They have the information of company financials, and according to that, they have the figures from the last few years to provide. PAT for the financial year 2022 in Million is 521.39, 2021 is 30.14, 2020 is (159.40).
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