Sula Vineyards IPO

Last Updated: 20 December 2022 1:10 PM by 5Paisa

India’s largest wine maker, Sula Vineyards is coming with an IPO which opens on 12th December, and closes on 14th December.
Sula Vineyards is considered a "category creator" and once the listing plans fructify, it would arguably be the first IPO in India by a pure play wine manufacturer.

The company plans to raise funds around Rs. 900-1000 cr via a pure OFS of 25,546,186 equity shares. The price band and lot size are yet to be announced. However, the shares are likely to be allotted on 19th December and the issue is expected to list on 22nd December.

CLSA, Kotak Mahindra Capital and IIFL Capital are the investment banks working on the issue.

Objective of Sula Vineyards IPO

The net proceeds from the issue will be utilised towards:

•    to carry out the Offer for Sale of up to 26,900,530 Equity Shares
•    achieve the benefits of listing the Equity Shares on the Stock Exchanges

Sula Vineyards IPO Video

Sula Vineyards is the largest wine producer and seller in India and has also been a consistent market leader in the category it operates in terms of sales and volumes. It also the most visited vineyards, it had approximately 368,000 people visiting it in 2020. 
the market leader across all four price segments, being ‘Elite’ (INR 950+), ‘Premium’ (INR 700-950), ‘Economy’ (INR 400- 700) and ‘Popular’ (INR<400). 
It also a market leader across wine variants, including red, white and sparkling wines
The company has two main categories, i.e., 
•    the production of wine, the import of wines and spirits, and the distribution of wines and spirits (the “Wine Business”)
•    the sale of services from ownership
Recently, it has also added a new segment of Wine Tourism business which vineyard resorts and tasting rooms. The resorts under “The Source at Sula” and “Beyond by Sula” brand names, having room capacities of 57 and 10 rooms, are located in Nasik while the tasting room named “Domaine Sula” is located in Karnataka. It also hosts India’s and Asia’s largest wine music festival.

Apart from the flagship brand Sula, the company also distributes wines under various other brands namely, e “RASA,” “Dindori”, “The source,” “Satori”, “Madera” & “Dia”. The business has to offer extensive varieties of wine at varying price points, with 56 labels to choose from a portfolio of 13 distinct brands making it accessible to the masses with different budgets. 

It services to nearly upto 8000 hotels, restaurants and caterers and Off-trade sales contributed upto 72.25% in the last 3 years of its secondary sales. The company has tie-ups with distributors in Maharashtra, Haryana, Delhi, Goa and Punjab and upto 13,000 retail touchpoints in 2021. 
 

Know About: Sula Vineyards IPO GMP

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