Sula Vineyards plans Rs.1,400 crore primary issue

In the Indian markets, if there is one name that is almost synonymous with a domestic brand of wine, it is Sula Vineyards. They set up their first winery in the year 1999 and it currently has more than 13 brands under its name.

These brands of wine are sold across a massive distribution network that spans 24 major states across India. Now Sula is planning to tap the IPO market with a public issue in the range of Rs1,200 core to Rs.1,400 crore.

The initial public offer (IPO) is yet to be filed with SEBI, but the company plans to file the draft red herring prospectus (DRHP) for the public issue in the next few weeks. SEBI normally takes a time of around 2-3 months to give its observations on the DRHP, which is tantamount to an approval.

Post the approval from SEBI, the company can go ahead with the IPO. Even if they file today, the IPO is likely only around September 2022. 

The details are yet to be made public and more granular details should come with the IPO DRHP when it is file. However, what is known is that it will be a mix of fresh issue and an offer for sale by the existing shareholders and early investors.

There are several PE investors who have already taken a stake in Sula Vineyards and these include names like DSG Consumer Partners, Everstone Capital, Saama Capital and Verlinvest.
 

Sula Vineyards has already appointed the merchant bankers for the public issue. The key merchant bankers include big names like IIFL Securities, Kotak Mahindra Capital and CLSA India.

They will also be the lead manages to the public issue and the first step is to ensure that the draft prospectus is filed with SEBI and the requisite approval of the regulator is secured. The process of the IPO and the road shows will commence only after that.

Sula Vineyards is based out of Nashik in Maharashtra which is a few hours drive from Mumbai. Sula currently has over 2,000 acres of vineyards under management and most of them are on a contract basis with farmers in Nashik and the adjoining regions.

It is the predominant brand of wine in India and corners nearly 52% share of the wine market in India. Drinking wine on a social level is just about picking up in the Indian market.