Sula Vineyards is set to launch its initial public offering (IPO) next week on Monday, December 12. The subscription of the IPO, which has a price band of Rs 340 to 357, will conclude on December 14. The company received the Securities and Exchange Board of India’s (SEBI) approval for the IPO last month after filing the draft papers in July this year. “The issue with a face value of Rs 2 per equity share is a complete offer for sale (OFS) aggregating to 25,546,186 equity shares,” the company in a statement
Kotak Mahindra Capital Company is the coordinating lead manager for Sula Vineyards IPO. Following the IPO, the equity shares of Sula Vineyards are slated to get a listing on the NSE and BSE.
At the upper price band, the company is expected to raise Rs 960 crores. Ahead of the launch of the public issue, the shares of Sula Vineyards are commanding a grey market premium of Rs. 40, revealed IPO Watch. This means that the grey market expects the IPO to get a listing at around Rs 390 (Rs 357 + 40). However, it must be noted that trading based on grey market sentiment is not advisable as its highly speculative in nature and may not necessarily be based on the true picture. Before making an investment in an IPO or otherwise. The investor must conduct thorough research about the fundamentals of the company.
Sula Vineyards posted a profit of Rs 52. 14 crores from its revenue of Rs 453.92 crore in FY22.
Set up in 1996, Sula, in 2000, became the first company to introduce varietal wines in India. Presently, the company produces 56 labels of wines across 13 brands from its production facilities in Karnataka and Maharashtra. Sula Vineyards is the largest wine producer and seller in India.
Apart from this, the company also derives revenue from the hospitality segment with two wine resorts- Beyond Sula and the Source at Sula- in Maharashtra’s Nashik.
As of January this year, the winery had a production capacity of over 13 million litres, of which 11 million litres are housed in Nashik and 2 million litres in Karnataka.
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