Sula Vineyards IPO: Today’s primary markets will receive Sula Vineyards’ first public offering (IPO). Bidding on the public issue will be accepted through December 14, 2022. The largest wine producer and retailer in India hopes to raise 960.35 crore from its public offering, which is entirely an OFS (offer for sale). The company has set the public issue’s pricing range at between 340 and 357 per share.
In the meantime, the grey market is sending out encouraging signs regarding the public offering ahead of Sula Vineyards’ IPO subscription opening date. Market watchers claim that shares of Sula Vineyards Ltd. are currently trading on the black market for a premium of 34.
Sula Vineyards stated in a BSE circular that it distributed 80.7 lakh equity shares before its IPO at an average price of Rs 357 each to raise Rs 288.10 crore from anchor investors.
In Maharashtra and Karnataka, the company currently produces 56 different wine labels at four owned and two leased production facilities.
About Sula Vineyards:
The biggest player in wine production and sales is Sula Vineyards. By increasing their market shares from 33% in 100% grape wine in 2009 to 52.6% in March 2021, they have become the market leader in terms of sales volume and value.
The company principally engages in two business segments: (1) wine production, wine and spirit imports, sales, and distribution; and (2) sales and services from ownership and management of wine tourist establishments.
They are the market leader in the Elite, Premium, Economy, and Popular price tiers. The most popular Indian wine, Sula Shiraz Cabernet, with a total billing value of Rs 918.26 million in March 2021.
The following are key Sula Vineyards IPO details:
– IPO GMP for Sula Vineyards: According to market watchers, shares of Sula Vineyards Ltd. are currently trading at a premium of 34 in the grey market, making the company’s current GMP 34. Sula Vineyards’ IPO GMP on Sunday was 24, thus the share price has increased by 10 in the grey market today.
Sula Vineyards has set the price range for its first public offering at between 340 and 357 rupees per equity share.
– Sula Vineyards IPO subscription status: As of 1:18 PM on the first day of bidding, the public issue has received 0.13 times as many subscriptions as its retail part.
– Sula Vineyards’ IPO size: The wine-producing and selling business hopes to raise 960.35 crore, all of which would be offered on the open market (OFS).
– Sula Vineyards Initial Public Offering lot size: A bidder may submit an application for the IPO in lots, with each lot containing 42 shares of the company.
– Sula Vineyards IPO application limit: A bidder may apply for a minimum of one lot and a maximum of 13 lots of the IPO on behalf of a retail investor.
– Sula Vineyards’ IPO share allocation date: The anticipated date is December 19, 2022.
– Sula Vineyards IPO listing: The public offering is expected to be listed on the BSE and NSE on December 22, 2022, as planned.
– KFin Technologies Limited has been named the official registrar of the Sula Vineyards Initial Public Offering (IPO).
-Financial data for Sula Vineyards: From FY20 to FY22, the company recorded a 6.7% CAGR decrease in consolidated revenue, which was Rs. 453.9 cr. in FY22. While there was a 1.5% CAGR rise in total sales volume during that time, the blended realisation fell by 9.4% CAGR due to less attention being paid to the distribution of third-party brands. While sales of third-party trademarks decreased by 53% CAGR, sales of owned brands climbed by 7.2% CAGR. So, from 63.6% in FY20 to 83.9% in FY22, the business contribution from sales of owned brands rose. While the business contribution from the wine tourism sector climbed by 10.9% CAGR, it was 7.6% in FY22.
Sula Vineyards reported a 36.8% year-over-year increase in sales volume and a 2.2% year-over-year increase in blended realisation in H1 FY23. Consolidated revenue at Sula increased by 40.8% year over year to Rs. 224.1 cr. The EBITDA and PAT margins increased by about 10 ppt and 11 ppt, respectively, due to relatively lower operating expenses.
The company’s book-running managers are Kotak Mahindra NSE -1.19% Capital Company, CLSA India, and IIFL Securities NSE -0.59%, while Kevin Technologies has been chosen to serve as the issue’s registrar.
Data from the National Stock Exchange (NSE) showed that it received total bids for 20,13,816 shares across both stock exchanges versus 1,88,30,372 shares on offer.
Why should you invest in Sula Vineyards’ initial public offering?
You should apply for the Sula Vineyard IPO for the following main reasons:
- Only a few companies compete in the highly fragmented Indian wine market, and entrance barriers are significant.
- With the most popular vineyards, Sula Vineyards is a pioneer in wine tourism in India. Sula Vineyards will receive about 368,000 visitors in 2020.
- One of the companies making alcoholic beverages that grew the fastest between 2011 and 2017 was the company, with a CAGR of 13.7%.
- They have a number of recognized brands in several wine categories.
How to apply for Sula Vineyards’ IPO?
- Retail investors must use UPI to submit their IPO applications.
- Link a UPI id to your bank.
- Register your Demat account’s Demat UPI ID.
- Activate your UPI Demat Account and subscribe to the Sula Vineyards IPO.
- Open a free Angel One Demat account if you’re a beginner investor to get started.
Here are the comments made regarding Sula Vineyards’ initial public offering by a variety of brokerage firms.
1. Canara Bank NSE 0.93 % Securities
The largest wine producer in India is Sula Vineyards.
According to the management, Canara Bank Securities, the contribution of the company’s owned brands has increased from 65% to 80% and would do so going forward.
The company would be able to increase its margin moving forward, it added with a subscribe recommendation for listing gains, given the growing share of high-margin areas in the revenues and focus on owned brands.
2. Religare NSE -0.37 % Broking
The business intends to concentrate on its brands, premiumize them, and leverage digital media to raise exposure. According to Religare Broking, it will continue to focus on growing its wine tourism business.
The issue appears pricey from a valuation standpoint, it added. The brokerage listed the industry’s rigorous laws, regulations, and licensing as well as the reduced promoter shares as the main business risks.
3. Swastika Investmart
Rating: Subscribe for caution
Additionally, it is a pioneer in the wine tourism industry. It benefits from having high entry barriers. The corporation has the biggest wine sales and distribution presence. According to Swastika Investmart, its financial performance is also getting better.
“This issue is priced lower than peers with a P/E ratio of 54.67. Complete offer for sale is the problem, and low promoter holding is also a problem “It stated that the rating was only for high-risk investors.
4. Anand Rathi Research
Rating: Subscribe for long term
According to Anand Rathi Research, Sula Vineyards Limited is offered at the top price band at P/E 35.8x, has a market value of Rs 30,058 million following the issuance of equity shares, and a return on net worth of 11.45%.
5. Choice Broking
Choice Broking stated, “We believe the domestic wine market is on the edge of exponential expansion considering the lesser wine penetration in the home market and expanding variables like rising per capita income and expanding target demographics.”
“There are no peers with similar product profiles.” Sub is in a good position to take advantage of potential growth prospects in the Indian wine market, as it is the country’s largest wine producer and seller. “With a subscribe rating, it was added.
6. Motilal Oswal
Rating: Subscribing for listing gains
In India’s grape wine market, Sula dominates, especially for premium products. According to Motilal Oswal’s research, it has high entry barriers and is ideally positioned to benefit from the industry’s expansion.
“We appreciate its emphasis on the direct-to-consumer approach, premiumization, and efforts to increase operational effectiveness.” The first public offering is valued at 49x 1HFY23 annualised EPS; it also included a recommendation to “subscribe for listing gains.”
7. ICICIDirect Research
Rating: Subscribe for Long Term
Since the pandemic, Sula has experienced a substantial increase in profitability, and the management anticipates range-bound results through FY22. According to the stockbroker, the stock is a pure play on the wine industry, which has a poor base right now.
“Since the industry is now in a nascent stage and demand centers are mostly concentrated in a few metros, we assign a subscribe rating with a long-term horizon to the IPO,” it added.
Sula Vineyards IPO FAQs
1. What is Sula Vineyards’ IPO?
The Sula Vineyards Initial Public Offering (IPO) consists of 26,900,530 equity shares with a face value of 2 that may total up to 960.35 crores. Priced between 340 and 357 per share, the issue. 42 shares are required as the minimum order quantity.
The IPO began on December 12 and ended on December 14 of that same year.
For the IPO, KFin Technologies Limited is acting as registrar. It is proposed that the shares list on the BSE and NSE.
2. How do I apply through Zerodha for the Sula Vineyards IPO?
Customers of Zerodha are able to apply online for the Sula Vineyards IPO using the UPI payment mechanism. Customers of Zerodha can submit an application for the Sula Vineyards IPO by logging into the Zerodha console (back office) and completing the form.
Application procedures for Sula Vineyards’ IPO on Zerodha
- Log in to Console at the Zerodha website.
- Click the IPOs link under Portfolio.
- Click the “Bid” button in the “Sula Vineyards IPO” row to submit a bid.
- Enter the Price, Quantity, and UPI ID.
- “Submit” your IPO application.
- To approve the mandate, log in to the UPI App (or BHIM or online banking).
3. When will the Sula Vineyards IPO begin?
On December 12, 2022, Sula Vineyards’ initial public offering (IPO) begins and ends.
4. What is the Sula Vineyards IPO lot size?
The minimum order quantity for Sula Vineyards’ IPO is, and the lot size is 42 shares.
5. How can I register for the Sula Vineyards IPO?
You can apply for the Sula Vineyards IPO online and pay with either UPI or ASBA. The ASBA IPO application is accessible through your bank account’s net banking. Brokers that don’t provide banking services offer UPI IPO applications. More information on how to apply for an IPO online through Zerodha, Upstox, 5Paisa, Edelweiss, ICICI Bank, HDFC Bank, and SBI Bank can be found here.
6. When will be Sula Vineyards IPO allotment?
The basis of allotment for the Sula Vineyards initial public offering (IPO) will be finalised on December 19, 2022, and the shares will be credited to your demat account by December 21, 2022. Verify the status of Sula Vineyards’ IPO allotments.
7. When is Sula Vineyards IPO listing date?
The date of Sula Vineyards’ initial public offering has not yet been disclosed. Dec. 22, 2022, is the anticipated day of Sula Vineyards’ first public offering.