Sula Vineyards IPO: 10 things to know before you subscribe to it

IPO opening

The price band of the company has been set at ₹340- 357 per share. The IPO is live from December 12 to December 14 this year. It commands 52 percent of wine share in India.

Grey market premium

The grey market premium for the Indian winemaker is ₹70 per share.GMP is the premium at which IPO shares are traded before being listed on the stock market officially.

Anchor investors

Ahead of its IPO, the company raised INR ₹288 crore from anchor investors. It included 22 investors like HDFC, ICICI Prudential Life Insurance, Abu Dhabi Investment Authority, Morgan Stanley (Asia) to name a few.

How much money will the company raise through IPO?

The Nashik-based winemaker aims to raise ₹960 crore through its IPO - a complete offer for sale by its investors and shareholders.

What does the company do?

India’s largest wine producer and seller, the company produces 56 different labels of wine, and exports its products to 20 countries. Founded in 2009, it has a farmer-friendly business model. It also runs vineyard resorts and tasting rooms.

Revenue and Profit

The company made a strong comeback after the Covid-19 pandemic. At ₹453.9 crore , its FY22 revenue rose by 9 percent over FY20 and by 27 percent over FY21. Its net profit jumped from ₹3 crore last year to ₹52.1 crore in 2022. Ebitda margin improved to 29 percent in FY23, as compared to FY22.

Sula spread across India

With an estimated 13,500 retail stores and over 8,000 restaurants, Sula has a widespread market presence, especially in Mumbai, Bengaluru, Delhi NCR, Pune, and Hyderabad.

Plans to spread to other cities

According to Sula Vineyards’s DRHP, the company plans to increase their presence in Tier 1 and tier 2 cities like Chennai, Rajasthan, Kolkata, Kerala and Goa.

Competition