Today signifies the start of Sula Vineyards‘ initial public offering. Sula Vineyards Ltd three-day initial public offering will open for subscription on Monday, with the price band set at Rs 340 to Rs 357 per share. The issue will be resolved on December 14. The IPO is expected to raise Rs 960.35 crore at the upper end of the price band. Investors can place bids for a minimum of 42 equity shares in multiples of 42.
As of March 31, 2022, Sula Vineyards Ltd (SVL) is India’s largest wine producer and distributor. Since FY09, the company has consistently led the Indian wine market in terms of volume and value of sales. From 33% in FY09 in the 100% grape wine category to 52% in value in FY22, the company has steadily increased its market share (measured in revenue).
Elite (Rs 950+), Premium (Rs 700-950), Economy (Rs 400-700), and Popular (market leader across wine variants including red, white, and sparkling wines) are the four price segments in which SVL dominates the market.
At its facility in Nashik, Maharashtra, SVL is the pioneer of wine tourism in India, having established the first wine tasting room in India, the first vineyard resort, the first wine music festival, and the first winery tours.
Sula Vineyards, the IPO’s lead company, announced on Friday that it had raised Rs 288 crore from anchor investors. The company has decided to issue 80,70,158 equity shares to anchor investors at Rs 357 each, for a total of Rs 288.10 crore.
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The IPO’s Features
The offer solicits up to 2.69 crore shares from selling shareholders at a price range of Rs 340-357 per share. At the top of the price range, the company expects to earn Rs 960 crore.
The offer’s subscription period will begin on December 12 and end on December 14; On December 22, the company’s shares will begin trading on stock exchanges.
When the company decided to allocate 80.70 lakh shares to anchor investors at the top of the price range on December 9, it had already collected Rs 288.10 crore from them ahead of its initial public offering.
The offer’s goal is to execute the offer for sale and reap the rewards of listing the equity shares on stock exchanges. The selling shareholders will receive all of the offer’s proceeds; none will be given to the company.
Premium Grey Market
According to IPO Watch, which monitors grey market activity, the company’s shares are currently fetching a premium of Rs 40 per share.
The premium currently being offered for the company’s shares is Rs 35 per share, according to IPO Central, another website that monitors the grey market.