Sula Vineyards IPO: GMP, subscription status, other details. Apply or not?

  • Sula Vineyards IPO GMP today is 31, say market observers

Asit Manohar
Updated13 Dec 2022, 07:14 PM IST
Visitors walk past giant sized wine bottles during a winery tour and wine tasting session at the Sula Vineyards in Nashik
Visitors walk past giant sized wine bottles during a winery tour and wine tasting session at the Sula Vineyards in Nashik

Sula Vineyards IPO: The initial public offer (IPO) of Sula Vineyards hit the primary markets on Monday and the public issue will remain open for bidding till 14th December 2022. India's largest wine producer and seller aims to raise 960.35 crore from its public offer and it is completely OFS (offer for sale) in nature. The company has fixed price band of the public issue at 340 to 357 apiece.

According to market observers, shares of Sula Vineyards Ltd are available at a premium of 31 in grey market today. At the end of day 2 of subscription, the public issue has been subscribed 0.59 times whereas its retail portion has been subscribed 0.99 times. 

Here we list out important Sula Vineyards IPO details:

- Sula Vineyards IPO GMP: As per the market observers, shares of Sula Vineyards Ltd are available at a premium of 34 in grey market today, which means Sula Vineyards GMP today is 34. On Sunday, Sula Vineyards IPO GMP was 24 that means Sula Vineyards share price has surged 10 in grey market today.

- Sula Vineyards IPO price band: Company has fixed price band of its public offer at 340 to 357 per equity share.

- Sula Vineyards IPO subscription status: At the end of day two, the issue was subscribed 59 times. The retail portion saw buying 99 per cent their allotted quota, amounting to over 92 lakh shares against 94 lakh shares on offer.

While the Non-Institutional Investor category (NII) saw buying 45 per cent accounting for over 18 lakh shares against 40 lakh shares on offer.

The Qualified institutional buyers bought 12,684 shares of the company out of the reserved portion of 53.80 lakh shares.

- Sula Vineyards IPO size: The wine producer and seller company aims to raise 960.35 crore, which is 100 per cent OFS in nature.

- Sula Vineyards IPO lot size: A bidder will be able to apply for the IPO in lots and one lot will comprise 42 shares of the company.

- Sula Vineyards IPO application limit: A bidder can apply for at least one lot whereas one retail investor can apply for maximum 13 lots of the IPO.

- Sula Vineyards IPO allotment date: The tentative date for share allocation is 19th December 2022.

- Sula Vineyards IPO listing: The public issue is proposed for listing on BSE and NSE and tentative date for listing of company shares is 22nd December 2022.

- Sula Vineyards IPO registrar: KFin Technologies Limited has been appointed as official registrar of the IPO.

-Sula Vineyards financials: Over FY20-22, the company reported a 6.7% CAGR fall in the consolidated revenue, which stood at Rs. 453.9 cr in FY22. During the period total sales volume increased by 1.5% CAGR, while lower focus on the distribution of third party brands led to 9.4% CAGR fall in the blended realization. Wine business from the owned brands increased by 7.2% CAGR, while business from third party brands declined by 53% CAGR. Consequently, business contribution from the sales of owned brands increased from 63.6% in FY20 to 83.9% in FY22. Business from wine tourism vertical increased by 10.9% CAGR, while its business contribution stood at 7.6% in FY22.

In H1 FY23, Sula Vineyards reported 36.8% Y-o-Y increase in the sales volume and 2.2% Y-o-Y rise in the blended realization. Sula reported a 40.8% Y-o-Y rise in consolidated revenue to Rs. 224.1cr. Relatively lower operating expenses led to around 10 ppts and 11 ppts expansion in the EBITDA and PAT margin.

- Sula Vineyards IPO review: On whether one should apply for the public issue or not, Choice Broking report says, "The IPO is coming with strong growth prospect and valuation comfort for investors. Considering the lower wine penetration in the domestic market and expanding demographic factors like rising per capita income and expanding target population, we believe the domestic wine market is on the cusp of exponential growth. Sula being the largest producer & seller of wine is well placed to capture the future growth opportunities in the Indian wine market. Thus we assign a “SUBSCRIBE” rating for the issue."

Giving 'subscribe' tag to the public issue, Swastika Investmart report says, "Sula vineyards Limited enjoys the benefit of high entry barriers in this industry. The company has the largest wine distribution network and sale presence. Its financial performance is also improving. This issue of Sula Vineyard is coming at a P/E valuation of 54.67 which is lower than its peers. The issue, however, is a complete offer for sale and low promoter holding is also a concern thus we recommend Subscribe rating to this IPO only for high-risk Investors."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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First Published:13 Dec 2022, 07:14 PM IST
HomeMarketsIPOSula Vineyards IPO: GMP, subscription status, other details. Apply or not?

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