ipo - issues open, ipo - news, sula vineyards

Sula Vineyards, based in the grape growing region of Nashik, Maharashtra is planning a pure OFS

The country’s largest wine producer Sula Vineyards is the first initial public offering getting launched in the month of December.

Here are 10 key things to know before subscribing to the public offer of Sula Vineyards:

1) IPO Dates

The public issue will open for subscription on December 12 and the closing date would be December 14, 2022.

2) Price Band

The price band for the offer has been fixed at Rs 340 to Rs 357 per share.

3) Public Issue Details

The company intends to raise Rs 960.35 crore via maiden public issue of 2.69 crore shares at the upper end of the price band.

The public issue is entirely an offer for sale by promoter Rajeev Samant and several investors.

The promoter is going to sell 9.37 lakh shares via offer for sale, while investors Cofintra SA, Haystack Investments, Saama Capital III, SWIP Holdings, Verlinvest SA, and Verlinvest France SA will offload 2.19 crore shares via OFS.

Amongst above investors, Cofintra SA, Verlinvest SA, and Verlinvest France SA will exit the company by selling their entire shareholding.

Other selling shareholders are Dinesh G Vazirani, J A Moos, Karishma Singh, Major A V Phatak, Narain Girdhar Chanrai, Ruta M Samant, and Sanjay Naraindas Kirpalani.

4) Objectives of Issue

The main objectives of the offer are to carry out this offer for sale, and achieve the benefits of listing equity shares on the stock exchanges.

The company will not receive any proceeds from the offer and all the money excluding issue expenses will go to selling shareholders.

5) Lot Size

Investors can bid for a minimum of 42 shares and in multiples of 42 shares thereafter. Retail investors can make a minimum investment of Rs 14,994 per lot and the maximum investment by them would be Rs 1,94,922 for 13 lots.

6) Investors’ Reserved Portion

The company has reserved half its offer size for qualified institutional buyers, 15 percent for high networth individuals (non-institutional investors) and the remaining 35 percent for retail investors.

The anchor book is also a part of qualified institutional investors, through which Sula Vineyards already raised Rs 288.10 crore on December 9, 2022 ahead of its public issue opening.

7) Company Profile

Sula Vineyards is India’s largest wine producer and seller as of March 2022, as per Technopak. It has consistently gained market share (on the basis of its total revenue from operations) from 33 percent in FY09 in grapes wine category to 52 percent in value in FY22.

The company also serviced close to 8,000 hotels, restaurants and caterers, and experienced a significant rise in off-trade sales in the last 3 years with off-trade sales contributing 72.25 percent of its secondary sales during FY22, compared to 61.33 percent in FY20.

It has managed to build the largest distribution network among wine companies in India, with close to 13,000 retail touchpoints across the country in 2021. It also has a strong direct to consumer (D2C) selling channel primarily through wine tourism business facilities in Nashik (Maharashtra) and Bengaluru (Karnataka), with the highest number of D2C sales in the Indian wine industry in FY21.

Sula Vineyards recorded profit of Rs 52.14 crore for the financial year ended March 2022, up significantly from Rs 3.01 crore in previous year due to low base as FY21 was impacted by Covid. Revenue from operations during the same period increased from Rs 454 crore, from Rs 417.9 crore.

In the half year period ended September 2022 (FY23), profit stood at Rs 30.5 crore on revenue of Rs 224 crore, against profit of Rs 4.5 crore on profit of Rs 159 crore.

8) Promoter

Rajeev Samant is the promoter, as well as Managing Director and Chief Executive Officer of the company. He and promoter group currently hold 28.44 percent stake in the company and the rest shareholding is held by the public.

Investor Verlinvest Asia Pte Ltd is the second largest shareholder in the company with 20.90 percent stake, followed by Cofintra SA and Verlinvest SA with 8.52 percent stake each.

9) Risk and Concerns

Here are some key risks and concerns highlighted by brokerages (Canara Bank Securities, Anand Rathi)

a) The legal, regulatory and policy environment in which they operate is evolving and subject to change.

b) Any disruption caused by adverse climatic conditions could disrupt the supply of grapes, hence adversely and materially affect their business.

c) If suppliers for any particular packaging materials or consumables are unable or unwilling to meet their requirements or estimates fall short of the demand, they could suffer shortages or cost increases.

d) They may not be able to adjust the retail prices of their products as a result of state regulation.

e) Failure to adapt their product offerings to changing market trends and consumer tastes, preferences and spending habits could cause their sales to decline, and they may not be able to maintain their competitive position in the alcohol beverage and wine industries.

f) Their processing units, raw materials and business operations are primarily concentrated in western and south-western parts of India, and any significant social, political, economic or seasonal disruption, or natural calamities or civil disruptions in these regions could have an adverse effect on business, results of operations, future cash flows and financial condition.

10) Allotment and Listing Dates

Sula Vineyards will finalise the IPO share allotment by December 19. The refunds will be credited to bank accounts of unsuccessful investors by December 20, and eligible investors will get shares in their demat accounts by December 21.

Finally the listing of shares will take place on the BSE and NSE on December 22.

Its IPO shares currently traded with around 10 percent premium over upper end of price band in the grey market, an unofficial trading platform for IPO shares, analysts said. According to them, the issue being offer for sale and recent consolidation in equity markets may be key reasons for low premium.

Kotak Mahindra Capital Company, CLSA India, and IIFL Securities are the book running lead managers to the issue, while KFin Technologies is the registrar.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.


Three IPOs worth over Rs 1,800 crore to keep Dalal Street on the boil next week

IPO The primary market is set to simmer next week with three public issues worth more than Rs 1,800 crore ready to be rolled out, setting off the start of IPOs for December after 10 floats last month. India’s largest wine maker and seller Sula Vineyards will launch its initial public offering on ...

View more: Three IPOs worth over Rs 1,800 crore to keep Dalal Street on the boil next week

Dharmaj Crop Guard settles with 12% gains on debut

Shares of Dharmaj Crop Guard settled with more than 12 percent gains on their debut on December 8, following positive market conditions and healthy IPO subscription numbers. The stock opened at Rs 266 on the National Stock Exchange and hit an intraday high of Rs 279 (up 17.7 percent). ...

View more: Dharmaj Crop Guard settles with 12% gains on debut

Overcome with a lot of emotions: PM Modi on BJP's record-breaking win in Gujarat

PM Modi With the BJP headed to a record tally in Gujarat, Prime Minister Narendra Modi said Thursday he was overcome with a lot of emotions on the “phenomenal election results”. “People blessed politics of development and at the same time expressed a desire that they want this momentum ...

View more: Overcome with a lot of emotions: PM Modi on BJP's record-breaking win in Gujarat

Dharmaj Crop Guard jumps 18% on debut | What should investors do now?

Agrochemical formulations manufacturer Dharmaj Crop Guard listed on December 8 with a double-digit premium that was a little lower than what analysts expected, possibly due to volatility in the equity markets. Analysts advise investors to hold the stock for the long term, given its better financial performance, healthy industry ...

View more: Dharmaj Crop Guard jumps 18% on debut | What should investors do now?

Sula Vineyards – India’s largest winemaker – set to hit IPO street on December 12

Empty wine bottles. Photographer: Dhiraj Singh/Bloomberg While recession fears have seen new listings grind to a halt this year, one of the few companies currently seeking to go public in Mumbai is testing investor appetite for India’s growing wine market. Sula Vineyards Ltd., which last month filed for an ...

View more: Sula Vineyards – India’s largest winemaker – set to hit IPO street on December 12

Landmark Cars to float IPO on December 13, sets price band at Rs 481-506

IPO Premium automotive retailer Landmark Cars is set to float its initial public offering (IPO) on December 13. The price band for the offer, which will close on December 15, is set at Rs 481-506 apiece. Investors can bid for a minimum of 29 shares and in multiples of 29 shares ...

View more: Landmark Cars to float IPO on December 13, sets price band at Rs 481-506

Dharmaj Crop Guard to debut on December 8 | Will it give double-digit gains on listing?

Representative image Agrochemical company Dharmaj Crop Guard is expected to start trading on December 8 with double-digit gains, given the overall positive sentiment in the equity markets. The expected listing gains are attributed largely to strong subscription numbers of its initial public offering, better financial performance, and a bullish ...

View more: Dharmaj Crop Guard to debut on December 8 | Will it give double-digit gains on listing?

Abans Holdings sets IPO price band at Rs 256-270

Abans Holdings, a financial services subsidiary of the Abans Group, has fixed the price band for its public issue at Rs 256-270 per share. The IPO will open for subscription on December 12 and will close on December 15. The anchor book will open for a day on December 9. The IPO comprises a fresh issue ...

View more: Abans Holdings sets IPO price band at Rs 256-270

Abans Holdings IPO to open on December 12

Dharmaj Crop Guard, Uniparts India IPO shares trade with double-digit premium in grey market

Dharmaj Crop Guard IPO share allotment expected today; here is how to check status online

Uniparts India IPO closes on a strong note, check here for allotment and listing dates

Uniparts India IPO sees full subscription on second day of bidding, retail portion booked 1.30 times

MC Explains: All you need to know about confidential IPO filing

Subscribe to Uniparts India Ltd: Ajcon Global

Uniparts India IPO subscribed 2.82 times on final day of offer

Tata Play becomes first firm in India to take ‘confidential’ pre-filing route

Dharmaj Crop Guard IPO closes | Check share allotment deets, listing date

Uniparts India IPO subscribed 2 times on Day 2 of offer

Subscribe-Long Term to Uniparts India Ltd: Anand Rathi


Top Car News Car News