Sula Vineyards IPO will open for subscription from 12 December 2022. the company aims for an issue size of ₹960.35 Cr through this IPO.
Sula Vineyards Limited
The company is India’s largest wine producer and seller as of March 31, 2021. It has been a consistent market leader in the Indian wine industry in terms of sales volume and value (on the basis of the total revenue from operations) since Fiscal 2009 crossing 50% market share by value in the domestic 100% grapes wine market in Fiscal 2012. It has consistently gained market share (on the basis of its total revenue from operations) from 33% in Fiscal 2009 in the 100% grapes wine category to 52% in value in Fiscal 2020 and further increased to 52.6% in Fiscal 2021.
Its business operates under two categories:
(i) The production of wine, the import of wines and spirits, and the distribution of wines and spirits (“Wine Business”) and
(ii) The sale of services from ownership and operation of wine tourism venues, including vineyard resorts and tasting rooms (“Wine Tourism Business”)
Currently, the company produces 56 different labels of wine at four owned and two leased production facilities located in the Indian states of Maharashtra and Karnataka. It 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% of secondary sales during Fiscal 2022, compared to 61.33% in Fiscal 2020.
Sula Vineyards has built a large 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 and Bengaluru, with the highest number of D2C sales in the Indian wine industry in Fiscal 2021.
Basic details about the company
| Full name | Sula Vineyards Limited |
| Sector | Alcohol |
| Industry | Breweries & Distilleries |
| Company Website | https://sulavineyards.com/ |
The objective of the Issue
- To carry out the offer for sale of up to 25,546,186 equity shares.
- To achieve the benefits of listing the equity shares on the stock exchanges.
Major Competitive strengths
- Strong management and employee force.
- India’s largest wine producer and seller as of March 31, 2021.
- Large distribution network among wine companies in India.
- has a strong direct to consumer (D2C) selling channel.
Sula Vineyards IPO Timetable
| IPO Opening date | 12 December 2022 |
| IPO Closing | 14 December 2022 |
| Basis of Allotment | 19 December 2022 |
| Initiation Refund | 20 December 2022 |
| Credit to Demat Account | 21 December 2022 |
| Listing Date | 22 December 2022 |
Sula Vineyards IPO details
| Issue type | Book Building |
| IPO issue size | ₹960.35 Cr – 26,900,530 shares |
| Fresh Issue | Nil |
| Offer for sale | ₹960.35 Cr – 26,900,530 shares |
| Face value | ₹02 per equity share |
| Price band | ₹340 to ₹357 per share |
| Lot size | 42 Shares |
| Retail Allocation | 35% |
| Listing Exchange | BSE & NSE |
Sula Vineyards IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 42 | ₹14,994 |
| Retail (Max) | 13 | 546 | ₹194,922 |
| S-HNI (Min) | 14 | 588 | ₹209,916 |
| B-HNI (Min) | 67 | 2,814 | ₹1,004,598 |
Reservation Details
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Sula Vineyards Financial Performance
| FY 2020 | FY 2021 | FY 2022 | H1 FY 2023 | |
| Revenue | 523.21 | 421.53 | 456.70 | 225.76 |
| Expenses | 472.72 | 357.02 | 340.63 | 161.45 |
| Net income | (15.94) | 3.01 | 52.14 | 30.51 |
| Margin (%) | (3.06) | 0.72 | 11.49 | 13.51 |
Sula Vineyards Valuations & Margins
| FY 2020 | FY 2021 | FY 2022 | |
| EPS | (2.01) | 0.38 | 6.53 |
| PE ratio | – | – | 52.07 – 54.67 |
| RONW (%) | (4.60) | 0.85 | 11.45 |
| NAV | 9.68 | 15.44 | 55.34 |
| ROCE (%) | 4.09 | 10.67 | 20.86 |
| EBITDA (%) | 9.68 | 15.44 | 25.57 |
| Debt/Equity | 1.23 | 0.99 | 0.58 |
Company Promoters
- Rajeev Samant
Sula Vineyards IPO Promoter Holding
| Pre Issue Share Holding | 28.44% |
| Post Issue Share Holding | 27.33% |
Lead Manager(s)
- Kotak Mahindra Capital Company Limited
- CLSA India Private Limited
- IIFL Securities Ltd
Sula Vineyards Offer Registrar
KFIN TECHNOLOGIES LIMITED
Selenium Tower – B, Plot 31 & 32, Gachibowli,
Financial District, Nanakramguda, Serilingampally,
Hyderabad – 500 032, Telangana
Phone: +91 40 6716 2222
E-mail: sula.ipo@kfintech.com
Website: www.kfintech.com
Sula Vineyards Contact Details
SULA VINEYARDS LIMITED
901, Hubtown Solaris, N.S. Phadke Marg,
Andheri (East), Mumbai 400 069
Maharashtra, India
Phone: +91 22 6128 0606
E-mail: cs@sulawines.com
Website: www.sulavineyards.com
Sula Vineyards IPO Allotment Status
Sula Vineyards IPO allotment will be available on KFin Tech website. Click on this link to get allotment status.
Final thoughts
Sula Vineyards IPO is going to hit Dalal street soon. applying for IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
