Sula Vineyards IPO subscribed 28% on day 1; GMP at ₹30

• The IPO of Nashik-based winemaker has been subscribed 0.28 times on the first day of the subscription process.
• Sula Vineyards plans to raise ₹960 crore through a complete offer for sale by promoters and shareholders. The company will not receive any funds from the IPO.
• The price band of the IPO is ₹340-357 per share.
• Shares of the company are commanding a premium of ₹30 in the grey market.

The initial public offering of wine producer and seller Sula Vineyards has been subscribed by 0.28 times on the first of the IPO subscription process.

The Nashik-based wine maker’s IPO received decent demand from retail investors as this portion was subscribed by 0.48 times.

The winemaker plans to raise ₹960 crore through a complete offer for sale by promoters and shareholders. The company will not receive any funds from the IPO.

The shares of the company are currently commanding a grey market premium, or GMP, of ₹30 per share, which came down from ₹70 earlier. GMP is the premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchanges.


Sula Vineyards distributes wines under a bouquet of brands such as Sula, RASA, Dindori, The Source, Satori, Madera and Dia. Currently, it produces 56 different labels of wine at four owned and two leased production facilities located in Maharashtra and Karnataka. Its flagship facility is located in Nashik, Maharashtra.

The company said in its draft red herring prospectus (DRHP) that it has consistently gained market share (on the basis of their total revenue from operations) from 33% in FY09 in 100% grapes wine category to 52.6% in FY21 in the Indian market.

Its business is classified under two categories -- the production, distribution and import of wines and other from wine tourism venues, including vineyard resorts and tasting rooms.

Presently, the majority of wine consumers are from the top urban centres with Mumbai, Bengaluru, Delhi NCR, Pune, and Hyderabad contributing more than 70% of the overall market.

“Our strategy is to increase our focus on the under penetrated markets in major metros like Chennai and Kolkata, the tourist markets of Kerala, Rajasthan and Goa, and other tier-1 and 2 cities across India,” said Sula Vineyards in its DRHP.

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