Sula Vineyards IPO: IPO of the largest wine making company is opening today, should you invest or not! – sula vineyards ipo opens today you should subscribe it or not
what do experts say
Experts say that there are many reasons for the growth in Sula Vineyards. Its share in India’s wine market is 57 percent. The company now wants to expand its business in Tier-2 and Tier-3 cities. The consumption of wine in the country is gradually increasing, which will definitely benefit the company. At present, 150 per cent duty is levied on import of foreign liquor. If the government reduces the tax, then the difficulty of Sula Vineyards may increase.
Raised 288 crores from anchor investors
The company raised Rs 288.10 crore from anchor investors ahead of the IPO. The company said in a regulatory filing that it has decided to allot 8,070,158 equity shares to anchor investors at a price of Rs 357 per share. More than 20 investors bought shares of the company in the anchor round. These include Abu Dhabi Investment Authority, Goldman Sachs, New York State Teachers Retirement System, Ashoka India Equity Investment Trust Plc, Segantii India Mauritius, Morgan Stanley, BNP Paribas Arbitrage and Citigroup Global Markets Mauritius.
56 types of wine
Sula Vineyards opened its first vineyard in 1996. After this, in the year 2000, the company also started making wine from different types of grapes. The company produces 56 types of wines under 13 different brands. The company has a total of six production units in Maharashtra and Karnataka. Last year the company’s profit stood at Rs 52.14 crore. The main source of income for Sula Vineyards is the sale of wine. But it also has other sources of income. The company also owns two wine resorts. Tourists stay in it. They do wine tasting. This also earns the company. Both these resorts are in the Nashik district of Maharashtra.
full OFS
According to the company’s MD Rajeev Samant, investors will have to bid for at least 42 shares. Thereafter bidding can be done in multiples of 42 shares. This offer is purely an Offer for Sale (OFS). Through this, the existing shareholders of the company are selling 26,900,530 equity shares. The company had applied to SEBI for IPO in July this year. The company has appointed Kotak Mahindra Capital, CLSA and IIFL Securities as managers for the IPO. Kfin Technologies is the Registrar for this IPO. The shares of Sula Vineyards will be listed on both the exchanges i.e. BSE and NSE.
