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Business News/ Markets / Stock Markets/  Sula Vineyards shares see positive debut, list at slight premium
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Sula Vineyards shares see positive debut, list at slight premium

Sula Vineyards IPO got subscribed 2.33 times by the last day of the public issue

Sula Vineyards shares listed today (AFP)Premium
Sula Vineyards shares listed today (AFP)

Shares of Sula Vineyards Ltd made their market debut on Thursday with the stock listing at 361 apiece on the NSE, a premium of more than a per cent as compared to its IPO issue price of 357 per share. On the BSE, Sula Vineyards shares started trading at 358 apiece.

“It enjoys the benefit of high entry barriers and has the largest wine distribution network and sales presence. Its financial performance is also improving. This issue of Sula Vineyards had a P/E valuation of 54.67, which seems fully priced; the issue, however, was a complete offer for sale, and a low promoter holding is also a concern. So, allottees who applied for the public offering for listing premium are advised to maintain their stop loss at Rs. 350 and wait for further upside till Rs. 380," said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.

The initial public offering (IPO) of Sula Vineyards was open from Monday, December 12 till Wednesday, December 14, 2022, which got subscribed 2.33 times by the last day of offer. The company had fixed a price band of 340-357 a share.

Sula Vineyards IPO was an entirely an offer for sale (OFS) aggregating to 26,900,532 equity shares by the promoter, investors and other shareholders, which included the sale of shares by Rajeev Suresh Samant, founder and CEO of Sula Vineyards as well as Belgian investment firms Verlinvest and Cofintra SA.

Sula Vineyards raised 288 crore from anchor investors ahead of its public offer. The company decided to allot 80,70,158 equity shares to anchor investors at 357 apiece. The capital was raised from 22 investors, including BNP Paribas Arbitrage, Morgan Stanley (Asia) Singapore Pte Ltd, Citigroup Global Markets Mauritius Pvt Ltd, Goldman Sachs and Abu Dhabi Investment Authority.

Sula Vineyards Limited is the India's largest wine producer and seller as of March 31, 2022. The company distributes wines under a bouquet of popular brands including RASA, Dindori, Satori, with its flagship brand Sula being the category creator of wine in India. 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.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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Updated: 22 Dec 2022, 10:26 AM IST
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