Sula Vineyards IPO is all set to debut in Indian stock market with issue size of 960.35cr and is one of the largest wine producers in India.
Sula Vineyards IPO Details
| IPO Date | Dec 12, 2022 to Dec 14, 2022 |
| Listing Date | [.] |
| Face Value | ₹2 per share |
| Price | ₹340 to ₹357 per share |
| Lot Size | 42 Shares |
| Issue Size | 26,900,530 shares of ₹2 (aggregating up to ₹960.35 Cr) |
| Offer for Sale | 26,900,530 shares of ₹2 (aggregating up to ₹960.35 Cr) |
| Issue Type | Book Built Issue IPO |
| Documents | DRHP,RHP |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not more than 50% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
| Retail Shares Offered | Not less than 35% of the Offer |
| Company Promoters | Rajeev Samant is the company promoter. |
Sula Vineyards IPO Tentative Dates
| Event | Tentative Date |
| Opening Date | Dec 12, 2022 |
| Closing Date | Dec 14, 2022 |
| Basis of Allotment | Dec 19, 2022 |
| Initiation of Refunds | Dec 20, 2022 |
| Credit of Shares to Demat | Dec 21, 2022 |
| Listing Date | Dec 22, 2022 |
Sula Vineyards LTD Industry Overview
India consumes less than 100 ml of wine per person annually. Compared to the global average of close to 13%, wine makes up less than 1% of total alcohol consumption in India. Wine consumption is greater in industrialised nations and can reach close to 30% in Europe.
With a per capita income of about USD 2100 in 2019, India has surpassed the threshold for per capita income when compared to China’s rise in wine consumption. This bodes well for India’s ability to increase wine consumption. Despite being one of the world’s fastest growing nations, India now has the lowest per capita wine consumption among major economies, at close to 25 millilitres.
A relatively low base supported by economic expansion, a favourable demographic dividend, and growing consumer acceptance of alcoholic beverages with low alcohol content are expected to propel the Indian wine market to sustained periods of rapid growth. The Indian wine market has the ability to expand significantly by utilising development prospects.
Sula Vineyards IPO Company Overview
The company also sells wine under a variety of well-known brands, including “Sula,” which is the “category inventor” of wine in India, as well as “RASA,” “Dindori,” “The Source,” “Satori,” “Madera,” and “Dia.” The company’s operations can be broadly divided into two categories: I the production of wine, importation of wines and spirits, and distribution of wines and spirits (the “Wine Business”); and (ii) the sale of services from ownership and management of wine tourism establishments, such as vineyard resorts and tasting rooms (the “Wine Tourism Business”)
In the Indian states of Maharashtra and Karnataka, the company currently employs four owned and two leased production facilities to manufacture 56 different wine labels. With around 13,000 retail touchpoints nationwide in 2021, the company will have built the greatest distribution network among wine companies in India. Additionally, the business has a successful direct-to-consumer (“D2C”) sales channel, primarily through its facilities for the wine tourism industry in Nashik and Bengaluru. As of September 30, 2022, Sula Vineyards Limited had contracts with grape farmers for roughly 2,290 acres of long-term supply (of up to 12 years).
Sula Vineyards IPO Objectives
The company will not receive any proceeds of the Offer for Sale by the Selling Shareholders.
Sula Vineyards LTD Financials
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth | Total Borrowing |
| 31-Mar-20 | 831.04 | 523.21 | -15.94 | 299.95 | 368.24 |
| 31-Mar-21 | 751.6 | 421.53 | 3.01 | 304.74 | 301.26 |
| 30-Sep-21 | 717.55 | 160.46 | 4.53 | 344.32 | 262.45 |
| 31-Mar-22 | 758.56 | 456.7 | 52.14 | 395.26 | 228.93 |
| 30-Sep-22 | 770.95 | 225.76 | 30.51 | 449.18 | 214.64 |
| Amount in ₹ Crore |
Sula Vineyards IPO Prospectus
Sula Vineyards IPO DRHP
Sula Vineyards IPO RHP
Sula Vineyards LTD Strengths
- Secured supply of raw material with long-term contracts exclusive to Sula0
- Leader and pioneer of the wine tourism business in India.
- Early adoption and focus on sustainability.
Sula Vineyards LTD Weaknesses
- Industry is subject to a licensing and excise regime with changing laws, rules and regulations and legal uncertainties, including adverse application of corporate and tax laws.
- Benefit from high import duties imposed on imports of international wines in India, but these duties could be reduced or eliminated in the future.
- Adverse climatic conditions may impact the quality of wine grapes.
Company Contact Information
Sula Vineyards Limited
901, Hubtown Solaris,
N.S. Phadke Marg,
Andheri (East), Mumbai 400 069 Maharashtra
Phone: +91 22 6128 0606
Email: cs@sulawines.com
Website: https://www.sulavineyards.com/
Sula Vineyards IPO Lead Manager(s)
- Kotak Mahindra Capital Company Limited (Past IPO Performance)
- CLSA India Private Limited (Past IPO Performance)
- IIFL Securities Ltd (Past IPO Performance)
