Home / Markets / Ipo /  Sula Vineyards gets Sebi approval to raise funds through IPO

India's largest wine producer, Sula Vineyards has received Sebi's approval to raise funds through an initial public offering (IPO). Sula's public issue will be entirely offer for sale (OFS). Sula filed its draft prospectus in July this year. Kotak Mahindra Capital Company is the co-ordinating lead manager for Sula Vineyards IPO. After the IPO, the equity shares are proposed to be listed on BSE and NSE.

The company received its observation letter from Sebi on November 3. It filed its draft prospectus with the market regulator on July 18, 2022.

The equity shares offered under the OFS have a face value of 2 per equity share.

Companies like Kotak Mahindra Capital Company, CLSA India, and IIFL Securities are acting as the book-running lead managers for the IPO, while KFin Technologies is the registrar of the offer.

Sula is the largest wine producer and seller and a market leader in the Indian wine industry in terms of sales volume and value since Fiscal 2009. The company first set up its vineyard in 1996 and in less than five years, in 2000 it became the first to introduce varietal wines in India by launching Sauvignon Blanc, Chenin Blanc, Zinfandel, Riesling, Red Sparkling, and dessert wine offerings.

During the fiscal 2005, the company launched the first wine tasting room in India at its winery in Nashik, Maharashtra followed by the country’s first vineyard resort in 2008, and in the same year, the wine-maker launched the first wine-themed music festival in India, “SulaFest", at its Nashik facility in 2008. In Fiscal 2017, it launched a wine-tasting room at its “Domaine Sula" facility in Karnataka.

Notably, Sula is recognised as the market leader across wine variants, including red, white, and sparkling wines. It distributes wines under popular brands such as Sula, its flagship brand besides other popular brands namely RASA, Dindori, The Source, Satori, Madera & Dia.

In FY21, Sula's Shiraz Cabernet became the largest-selling wine by value. Its gross billings amounted to 91.83 crore in FY22.

The company has reported healthy growth in terms of revenue to 453.92 crore in FY22 rising by 8.60% from 417.96 crore in FY21, primarily due to an increase in sales of manufactured goods under its brands, an increase in the selling price of wine in select brands and markets, increase in revenue due to increased focus on premiumisation, favourable response its wine tourism business and increase in revenue from other operating income (government grants).

Meanwhile, the company's net profit was robust to 52.14 crore in FY22 --- rising by multi-fold compared to a profit of mere 3.01 crore from the previous fiscal.

At present, Sula produces 56 different labels of wine across 13 distinct brands at its four owned and two leased production facilities located in the Indian states of Maharashtra and Karnataka.

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