India’s largest wine producer, Sula Vineyards has received SEBI’s nod to raise funds through an initial public offering (IPO). Sula’s public issue will be purely an offer for sale (OFS). Sula had filed his draft prospectus in July this year. Kotak Mahindra Capital is the co-ordinating lead manager for the company Sula Vineyards IPO. The equity shares are proposed to be listed on BSE and NSE after the IPO.
The company received its observation letter from SEBI on November 3. It filed its draft prospectus with the market regulator on July 18, 2022.
The face value of the equity shares offered under OFS is 2 per equity share.
Companies such as Kotak Mahindra Capital Company, CLSA India and IIFL Securities are acting as the book-running lead managers for the IPO, while Keffin Technologies is the registrar of the offer.
Sula is the largest wine producer and seller and a market leader in the Indian wine industry in terms of sales volume and value since FY 2009. The company first established its vineyard in 1996, and in less than five years, it became its first in 2000. To introduce varietal wines in India by launching Sauvignon Blanc, Chenin Blanc, Zinfandel, Riesling, Red Sparkling and Desert Wine offerings.
During fiscal year 2005, the company launched the first wine tasting room in India at its winery in Nashik, Maharashtra, followed by the country’s first Vineyard resort in 2008, and in the same year, the winemaker hosted the first wine-themed concert. began. In India, “Sulafest”, 2008 at its Nashik facility. In fiscal 2017, it launched a wine-tasting room at its “Domain Sula” facility in Karnataka.
In particular, Sula is recognized as a market leader in wine variants including red, white and sparkling wines. It distributes wines under popular brands such as Sula, its flagship brand apart from other popular brands such as Rasa, Dindori, The Source, Satori, Madera and Dia.
In FY21, Sula’s Shiraz Cabernet became the best-selling wine by value. its gross billing amount was 91.83 crore in FY22.
The company has registered good growth in terms of revenue 8.60% growth from Rs 453.92 crore in FY22 417.96 crore in FY 2011, mainly due to increase in sales of manufactured goods under its own brands, increase in selling price of alcohol in select brands and markets, increase in revenue due to focus on premiumisation, favorable to its wine tourism business Increased revenue from feedback and other operating income (government grants).
Meanwhile, the company’s net profit was strong. 52.14 crores in FY22 — manifold increase in comparison to profit of only 3.01 crore from the previous financial year.
Currently, Sula produces 56 different labels of alcohol across 13 different brands at its four owned and two leased production facilities located in the Indian states of Maharashtra and Karnataka.
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