Sula Vineyards Limited has come up with an initial public offer (IPO). It will open on December 12-14, 2022 at Rs.340-357 a share. The IPO issue size is around Rs.960.35 crores. The minimum bid will be for 42 shares and in its multiples thereafter.
Overview
Sula Vineyards Limited was incorporated in the year 2003. It is India’s largest wine producer and seller as of March 31, 2022. It has been a consistent market leader in the Indian wine industry in terms of sales volume and value since Fiscal 2009. The company has consistently gained market share from 33% in Fiscal 2009 in 100% grapes wine category to 52% in value in Fiscal 2022. Furthermore, it is the market leader across all four price segments, being ‘Elite’ (INR 950+), ‘Premium’ (INR 700-950), ‘Economy’ (INR 400-700), and ‘Popular’ (<INR 400), with a higher share of approximately 61%. Furthermore, it is also recognized as the market leader across wine variants, including red, white and sparkling wines.
Sula Shiraz Cabernet is India’s largest-selling wine by value in Fiscal 2021. The company’s gross billings of Sula Shiraz Cabernet amounted to Rs.918.26 million, Rs.475.64 million and Rs.319.73 million in Fiscal 2022 and for the six months period ended September 30, 2021 and September 30, 2022, respectively.
Sula Vineyards’ business can be broadly classified under two categories (i) the production of wine, the import of wines and spirits, and the distribution of wines and spirits (the “Wine Business”); and (ii) the sale of services from ownership and operation of wine tourism venues, including vineyard resorts and tasting rooms (the “Wine Tourism Business”).
Currently, it produces 56 different labels of wine at four owned and two leased production facilities located in the Indian states of Maharashtra and Karnataka. Furthermore, it is among the top ten most followed vineyards on social media in the world.
Website – https://www.sulavineyards.com/
Promoters
| Rajeev Samant – 27.15% |
Promoter Holding
| Pre-Issue Shareholding – 28.44% | Post-Issue Shareholding – 27.33% |
Strength & Weakness
| Strengths | Weaknesses |
| High barriers of entry | The industry is subject to a licensing |
| Established market leader in the Indian wine industry | Risk of adverse climatic conditions |
| Largest wine producer in India | Rely heavily on our brand portfolio |
| Innovative product offering with efficient production mechanism | Revenue is dependent upon a limited no. of customers |
| Largest wine distribution network and sales presence | Reported a restated loss in past fiscals |
| Secured supply of raw materials with long-term contracts | Entered into related party transactions in past |
| Leader and pioneer of the wine tourism business in India | Advertising of alcoholic beverage products is restricted in India |
| Early adoption and focus on sustainability | Wine Tourism Business is subject to seasonal |
| Experienced Board, qualified senior management team | Outstanding legal proceedings |
Brands
| RASA | Dindori |
| The source | Satori |
| Mosaic | Samara |
| Madera | Dia |
Competitors
| United Spirits Limited |
| Radico Khaitan Limited |
| United Breweries Limited |
Company Financials
| Year | Revenue (in Crore) | Profit (in Crore) |
| 31-Mar-2020 | 523.21 | -15.94 |
| 31-Mar-2021 | 421.53 | 3.01 |
| 31-Mar-2022 | 456.70 | 52.14 |
| 30-Jun-2022 | 225.76 | 30.51 |
Object of Issue
1) To carry out the Offer for Sale of Equity Shares by the Selling Shareholders
2) Achieve the benefits of listing the Equity Shares on the Stock Exchanges
Sula Vineyards IPO Lot Size
| Application | Lot | Shares | Amount |
| Retail (Min) | 1 | 42 | Rs.14,994 |
| Retail (Max) | 13 | 546 | Rs.1,94,922 |
| S-HNI (Min) | 14 | 588 | Rs.2,09,916 |
| B-HNI (Max) | 67 | 2,814 | Rs.10,04,598 |
Sula Vineyards IPO Details
| IPO Opening Date | December 12, 2022 |
| IPO Closing Date | December 14, 2022 |
| Face Value | Rs.2 per Equity Share |
| IPO Price | Rs.340-357 per share |
| Market Lot | 42 shares |
| Minimum Order Quantity | 42 shares |
| Listing At | NSE, BSE |
| No. of shares offered (OFS) | 2,69,00,530 shares |
| Issue Size | Up to Rs.960.35 Crore |
| QIB Shares Offered | 50% of the offer |
| Retail Shares Offered | 35% of the offer |
| NII/HNI Shares Offered | 15% of the offer |
Sula Vineyards IPO Timetable
| IPO Date | December 12-14, 2022 |
| Allotment Date | December 19, 2022 |
| Initiation of Refunds | December 20, 2022 |
| Credit of share to Demat a/c | December 21, 2022 |
| IPO Listing Date | December 22, 2022 |
Allotment Status
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