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Sula Vineyards files DRHP with Sebi for IPO

Published on Jul 19, 2022 12:39

Wine producer Sula Vineyards has filed preliminary papers with capital market regulator Securities and Exchange Board of India (Sebi) to raise funds through an initial public offering (IPO).

The public issue will be entirely an offer for sale (OFS) aggregating to 2,55,46,186 equity shares of face value Rs 2 each by the promoter, investors and other shareholders, according to the draft red herring prospectus (DRHP) filed with Sebi.

Promoter, founder and CEO Rajeev Samant, and investors such as Cofintra, Haystack Investments, Saama Capital III, SWIP Holdings, Verlinvest S.A and Verlinvest France S.A. are selling their stakes through the OFS route.

Sula Vineyards is India`s largest wine producer and seller as of 31 March 2021. It has consistently gained market share (on the basis of its total revenue from operations) from 33% in Fiscal 2009 in 100% grapes wine category to 52% in value in Fiscal 2020 and further increased to 52.6% in Fiscal 2021.

Currently, the company produces 56 different labels of wine at four owned and two leased production facilities located in the Indian states of Maharashtra and Karnataka.

The company`s business can be broadly classified under two categories: the production of wine, the import of wines and spirits, and the distribution of wines and spirits (the "Wine Business"); and the sale of services from ownership and operation of wine tourism venues, including vineyard resorts and tasting rooms (the "Wine Tourism Business").

The Nashik-based wine maker`s revenue from operations increased by 8.60% to Rs 453.92 crore in Fiscal 2022 from Rs 417.96 crore in Fiscal 2021. It clocked a profit of Rs 52.14 crore in the financial year FY22 as against Rs 3.01 crore in the previous year.

Kotak Mahindra Capital Company, CLSA India and IIFL Securities are the book running lead managers. The equity shares are proposed to be listed on BSE and NSE.

Reliance Corporate Advisory Services, a wholly-owned subsidiary of Reliance Capital, in 2018 sold a 19.05% stake in Sula Vineyards for Rs 256 crore.

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