India’s largest wine producer and seller, Sula Vineyards, is coming up with its initial public offering (IPO) on December 12.
The window for subscription to the IPO will close on December 14. Anchor book to Sula Vineyards IPO will start on December 9.
The company will raise Rs 960 crore from the initial share sale against Rs 1,200-1,400 crore decided earlier. Since this IPO is entirely an offer for sale (OFS) where selling shareholders would dump around 2.69 crore equity shares for the public, the entire proceeds will not go to the company.
Promoter–Rajeev Samant, along with other shareholders– Dinesh G. Vazirani, J.A. Moos, Karishma Singh, Major A.V. Phatak, Narain Girdhar Chanrai, Ruta M. Samant, and Sanjay Naraindas Kirpalani will participate in the OFS.
Investors such as Cofintra S.A, Haystack Investments, Saama Capital III, SWIP Holdings, Verlinvest S.A, and Verlinvest France S.A will also offer their shares for sale.
Qualified institutional buyers (QIB) can bid for 50% of the total IPO size, while non-institutional investors (NIIs) can bid for 35%, and the remaining 35% quota is for retail investors. A retail investor can bid for a minimum of 42 equity shares and in multiples thereof.
Kotak Mahindra Capital Company, CLSA India, and IIFL Securities are the book-running lead managers for the maiden share sale.
Sula Vineyards, in the 100% grapes wine category, grew its company’s market share based on revenue from 33% in FY09 to 52% in FY20 and further to 52.6% in fiscal 21.
The wine-producing company currently produces 56 different labels of wines across 13 district brands at its four-owned and two leased production facilities based out of Maharashtra and Karnataka.
In the last fiscal, the company’s revenue from operations stood at ₹4,539.16 million with a net sales margin1 of 69.83% and PAT of ₹521.39 million. In the first two-quarters of FY23, the company generated revenue of ₹2,240.68 million with a net sales margin of 74.32% and profit after tax of ₹ ₹305.06 million.
Reliance Corporate Advisory Services, a wholly-owned subsidiary of Reliance Capital, offloaded its 19.05 percent stake entirely in Sula Vineyards for ₹ 256 crore in 2018.