Sula Vineyards IPO Membership Day 2: The initial public offer (IPO) of Sula Vineyards, India’s largest wine maker and seller, hit the primary markets on Monday and the public issue will be open for bidding till December 14, 2022. The leading liquor maker’s IPO received bids for 52,34,670 shares against 1,34,670 shares. 88,30,372 shares on offer, according to NSE data.
Sula Vineyards IPO: Subscription Status
Retail investors and high net worth individuals became active on day one, buying 48 and 18 per cent of their quota, respectively.
But qualified institutional buyers are yet to place their bids for the offer. They have already invested Rs 288.10 crore in the company through anchor book.
Half of the offer has been reserved for qualified institutional buyers, 15 per cent for high net worth individuals (non-institutional investors) and the remaining 35 per cent for retail investors.
Sula Vineyards IPO: Important Dates
Anchor investors will be allowed to bid for Sula Vineyards on December 9 ahead of the IPO. The company is expected to start crediting shares to allottees on December 21 and the stock may start listing on exchanges on December 22.
Sula Vineyards IPO: Lot Size
Investors can bid for a minimum of 42 Equity Shares and in multiples of 42 Equity Shares thereafter.
Sula Vineyards IPO: Shareholders
Promoter Rajeev Samanta will participate in the OFS along with other sale shareholders including Cofintra SA, Haystack Investments, SAMA Capital III, SWIP Holdings, Verlinvest France SA, Verlinvest SA and others.
Sula Vineyards IPO: Financials
For the year ended March 31, 2022, the company reported total revenue of Rs 456.7 crore with a net profit of Rs 52.14 crore, as against Rs 421.53 crore and Rs 3.01 crore in the year-ago period. 30.51 crores with a total revenue of Rs.225.76 crores for the period ending September 30, 2022.
Kotak Investment Banking, CLSA and IIFL Securities are the Book Running Managers to the IPO and Kefin Technologies Limited is the Registrar to the Offer. Law firms Shardul Amarchand Mangaldas and Trigal are the legal advisors, according to draft papers filed with Sebi.
Sula Vineyards IPO: GMP
According to market observers, Sula Vineyards Ltd shares are available at a premium of Rs 34 in the gray market today, which means Sula Vineyards GMP is Rs 34 today. The IPO GMP of Sula Vineyards was Rs 24 on Sunday, which means Sula Vineyards share price has gained Rs 10 in the gray market today.
Sula Vineyards IPO: Status of share allotment
Those who will bid for the issue can check the subscription status on the online portal of Kfin Technologies, the registrar to the IPO.
About Sula Vineyards
The Nashik based wine maker has been recognized as the market leader across all wine variants including red, white and sparkling wines. The firm distributes wines under its bouquet of popular brands such as its flagship brand Sula, besides other popular brands such as RASA, Dindori, The Source, Satori, Madera and Diya.
Sula is backed by various private equity funds and institutional investors, including Verlinvest, Everstone Capital, Viswires, SAMA Capital and DSG Consumer Partners. The company’s distribution platform includes more than 47 distributors, 10 corporations, 23 licensed resellers, 7 company depots. 4 defense units and over 23,000 points of sale by March 31, 2022.
Sula Vineyards IPO: Financials
In FY20-22, the company reported a 6.7% CAGR decline in consolidated revenue, which stood at Rs. 453.9 crore in FY22. Total sales volume grew at a CAGR of 1.5 per cent during the period, while blended realization declined at a CAGR of 9.4 per cent due to less focus on distribution of third-party brands. Liquor business from owned brands grew at a CAGR of 7.2 per cent, while business from third-party brands declined at a CAGR of 53 per cent. As a result, business contribution from sales of owned brands increased from 63.6 per cent in FY20 to 83.9 per cent in FY22. Business The wine tourism vertical grew at a CAGR of 10.9 per cent, while its business contribution stood at 7.6 per cent in FY22.
Should you invest?
“The stock is a pure play on the alcohol sector, which currently sits on a low base (less than 1 percent of the alcoholic beverage industry) but is expected to exceed industry growth due to high acceptability, affordability, perceived health benefits, etc.” The IPO has been assigned subscription rating with long-term horizon as the industry is currently at a nascent stage and the demand centers are mainly concentrated in a few metros, ICICI Direct said.
Giving the public issue a ‘subscribed’ tag, a Swastika Investmart report says, “Sula Vineyards Limited enjoys the advantage of high entry barriers in the industry. The company has the largest wine distribution network and sales presence. Its financial performance has also improving. This issue of Sula Vineyards is coming at a P/E valuation of 54.67 which is lower than its peers. However, the issue is a complete offer for sale and low promoter holding is also a concern , Hence we recommend this IPO subscribe rating for high risk appetite investors only.”
Disclaimer:Disclaimer: The views and investment tips given by the experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decision.
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