Sula Vineyards IPO ends with decent subscription

Published on Dec 15, 2022 10:43

The initial public offer (IPO) of Sula Vineyards received bids for 4,38,36,954 shares as against 1,88,30,372 shares on offer. The issue was subscribed 2.33 times.

The Qualified Institutional Buyers (QIBs) category was subscribed 4.13 times. The Non Institutional Investors (NIIs) category was subscribed 1.51 times. The Retail Individual Investors (RIIs) category was subscribed 1.65 times.

The issue opened for bidding on Monday (12 December 2022) and it closed on Wednesday (14 December 2022). The price band of the IPO is fixed at Rs 340-357 per share.

The issue comprised only offer for sale (OFS) of Rs 960.35 crore by the existing shareholders. The promoters and promoter group held an aggregate of 23,945,864 equity shares, totaling 28.44% of the pre-offer issued and paid-up equity share capital. The post IPO shareholding is expected to be around 27.33%.

The company will not directly receive any proceeds from the offer. All proceeds will be received by the selling shareholders, in proportion to the offered shares sold by them.

Ahead of the IPO, Sula Vineyards on Friday, 9 December 2022, raised Rs 288.10 crore from anchor investors. The board allotted 80,70,158 shares at Rs 357 per share to 22 anchor investors.

Sula Vineyards is India`s largest wine producer and seller as of 31 March The company distributes wines under a bouquet of popular brands. In addition to the flagship brand Sula, popular brands include Rasa, Dindori, The source, Satori, Madera and Dia.

The company reported consolidated net profit of Rs 30.51 crore and sales of Rs 224.07 crore in the six months ended September 2022.