SULA VINEYARDS SETS PRICE BAND AT RS 340-357 PER SHARE
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Sula Vineyards has set a price band at Rs 340-357 per share (implied MCap: Rs 2863-3006 crore at FY22 trailing 55-58 multiple). The issue is entirely OFS of up to 32% of issued share capital (Rs 960 crore). Promoter Rajeev Samant (key person) has 27.2% stake and would participate in the OFS along-with other PE players
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The company is a pure play on wine category in India (1.8 million cases market, less than 1% of India alcobev sector). However, the industry is expected to grow at 24% to Rs2550 crore in FY25E. The growth is expected on back of higher premiumisation, reduction of social taboo, perception of health benefits, etc. The management expects the current margins to sustain (65-70% gross margins) in the near to medium term, on the back of higher own brands sales component
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