Sula Vineyards Limited IPO Details

 

Sula Vineyards Limited

 

Offer period

Dec 12, 2022, to Dec 14, 2022,

Price Band

₹340 to ₹357 per share

Lot Size

42 Shares

Issue Size

₹960.35 Cr

Listing Date

Dec 22, 2022

Allotment Date

Dec 19, 2022

 

Sula Vineyards Limited - Company Overview

Sula Vineyards Limited, established in 2003, is India's leading winemaker and seller as of March 31, 2022. With its flagship brand "Sula" serving as India's "category creator" of wine, the company also distributes wines under a number of well-known brands, including "RASA," "Dindori," "The Source," "Satori," "Madera," and "Dia."

The operations of the company are divided into two categories:

  • wine production, wine and spirit importation, and wine and spirit distribution (the "Wine Business")

  • the sale of services derived from the ownership and operation of wine tourism establishments such as vineyard resorts and tasting rooms (the "Wine Tourism Business")

 

Sula Vineyards Limited - Business Overview

The company currently produces 56 different wine labels in the Indian states of Maharashtra and Karnataka, using four owned and two leased production facilities.

With nearly 13,000 retail touchpoints across the country by 2021, the company will have built the largest distribution network among wine companies in India.

Furthermore, the company has a strong direct-to-consumer ("D2C") selling channel, primarily via the Wine Tourism Business facilities in Nashik and Bengaluru. Sula Vineyards Limited had entered into long-term supply agreements (of up to 12 years) with grape growers for approximately 2,290 acres as of September 30, 2022.

The company's distribution platform included over 50 distributors, 11 corporations, 14 licenced resellers, 7 company depots, and 3 defence units as of September 30, 2022. The company had over 23,000 points of sale as of March 31, 2022. (including over 13,500 retail touchpoints and over 9,000 hotels, restaurants, and caterers).

The company had 141 permanent sales employees as of September 30, 2022.

 

Sula Vineyards Limited - IPO SYNOPSIS

Sula Vineyards, India's largest winemaker, is planning an initial public offering (IPO) that will begin on December 12th and end on December 14th.

Sula Vineyards is regarded as a "category creator," It is the first IPO in India by a pure-play wine manufacturer.

The company intends to raise approximately Rs. 960.35 crores through a pure OFS of 25,546,186 equity shares. The price range is Rs 340-357, with a lot size of 42 shares. The shares will be distributed on December 19th, and the issue will go public on December 22nd.

The investment banks involved in the project are CLSA, Kotak Mahindra Capital, and IIFL Capital.

 

Sula Vineyards Limited - Objectives of the IPO

The following uses for the offering's net proceeds:

  • to conduct a public offering of up to 26,900,530 equity shares;

  • to reap the benefits of listing the equity shares on stock exchanges.

 

Sula Vineyards Limited - Financial Overview (in crores)

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

 

Sula Vineyards Limited - Pros
  • High entry barriers

  • Established market leader in the Indian wine industry with the leading brand "Sula"

  • India's largest wine producer, with the most diverse and innovative product offering supported by an efficient production mechanism;

  • India's largest wine distribution network and sales presence

 

Sula Vineyards Limited - Cons
  • Subjected to a licencing and excise regime with changing laws, rules, and regulations, as well as legal uncertainties, including the adverse application of corporate and tax laws;

  • Reduction or elimination of high import duties imposed on international wine imports into India

  • The effect of adverse weather conditions on the quality of wine grapes, which are the primary raw material

  • Inability to adjust retail prices of its products due to state regulation; • Changes in consumer taste and preference, with the possibility that they will not prefer wine in the future;

  • Any supply disruptions in raw materials

 
How to Apply for Sula Vineyards Limited IPO
  1. Go to https://ipo.adityatrading.in/

  2. Enter your client ID

  3. Enter the OTP received in your registered mobile number.

  4. Choose the IPO and click on apply button.

  5. Enter the UPI ID, Quantity, and Cut off price.

  6. Click on submit button

  7. Confirm the mandate the mandate request received on your phone by entering the UPI Pin.

  8. You can also watch our youtube video on “How to Apply on IPO”

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