Nashik-based Sula Vineyards, the leader in India’s wine segment, is providing an offer for sale for institutional investors. Here are 10 things you need to know about its IPO:
Dec 12, 2022
By: eetika.kapoor@timesinternet.in
Credit: Sula Vineyards
The price band of the company has been set at ₹340- 357 per share. The IPO is live from December 12 to December 14 this year. It commands 52 percent of wine share in India.
Credit: Sula Vineyards
The grey market premium for the Indian winemaker is ₹70 per share.GMP is the premium at which IPO shares are traded before being listed on the stock market officially.
Credit: Pixabay
Ahead of its IPO, the company raised INR ₹288 crore from anchor investors. It included 22 investors like HDFC, ICICI Prudential Life Insurance, Abu Dhabi Investment Authority, Morgan Stanley (Asia) to name a few.
Credit: BCCL
The Nashik-based winemaker aims to raise ₹960 crore through its IPO - a complete offer for sale by its investors and shareholders.
Credit: Sula Vineyards
India’s largest wine producer and seller, the company produces 56 different labels of wine, and exports its products to 20 countries. Founded in 2009, it has a farmer-friendly business model. It also runs vineyard resorts and tasting rooms.
Credit: Sula Vineyards
The company made a strong comeback after the Covid-19 pandemic. At ₹453.9 crore , its FY22 revenue rose by 9 percent over FY20 and by 27 percent over FY21. Its net profit jumped from ₹3 crore last year to ₹52.1 crore in 2022. Ebitda margin improved to 29 percent in FY23, as compared to FY22.
Credit: Sula Vineyards
With an estimated 13,500 retail stores and over 8,000 restaurants, Sula has a widespread market presence, especially in Mumbai, Bengaluru, Delhi NCR, Pune, and Hyderabad.
Credit: Sula Vineyards
According to Sula Vineyards’s DRHP, the company plans to increase their presence in Tier 1 and tier 2 cities like Chennai, Rajasthan, Kolkata, Kerala and Goa.
Credit: BCCL
The company faces competition from Fratelli Wines and Grover Zampa, owning 20% and 11% of the market share respectively.
Credit: BCCL