Company Profile
Sula Vineyards Limited, a 2003 incorporation, is the largest wine producer and distributor in India as of March 31st, 2022. The company also market wines under a bouquet of prominent brands including "RASA," "Dindori", "The source," "Satori", "Madera" & "Dia" with its flagship brand "Sula" being the "category creator" of wine in India.
The company's operations can be broadly divided into two categories. First, the production of wine, importation of wines and spirits, and distribution of wines and spirits (the "Wine Business"); second is the sale of services from ownership and management of wine tourism establishments, such as vineyard resorts and tasting rooms (the "Wine Tourism Business")
Business Profile
In the Indian states of Maharashtra and Karnataka, the company currently employs four owned and two leased production facilities to manufacture 56 different wine labels. With around 13,000 retail touchpoints nationwide in 2021, the company built the greatest distribution network among wine companies in India.
Additionally, the business has a successful direct-to-consumer ("D2C") sales channel, primarily through its facilities for the wine tourism industry in Nashik and Bengaluru. As of September 30, 2022, Sula Vineyards Limited had contracts with grape farmers for roughly 2,290 acres of long-term supply (of up to 12 years).
As of September 30, 2022, the business's distribution network includes more than 50 distributors, 11 corporations, 14 authorised resellers, 7 company depots, and 3 defence units. The company employed 141 permanent salespeople and 757 employees on its payroll as of September 30, 2022.
Facts About the Company
- It is the market leader in the Elite, Premium, Economy, and Popular categories, which represent the four price ranges.
- In the grape wine category, SVL continually increased its market share from 33% to 52% (based on total income from operations).
- Also, the leader in the market for all types of wines, including red, white, and sparkling wines.
- By value, Sula Shiraz Cabernet is the wine that sells the most in India.
Points to Note before Investing in the IPO
- With a market share of almost 52%, SVL is India's largest wine producer
- A sudden increase in margins over the previous 18 months' performance is cause for concern.
- The issue appears to be fully valued, discounting immediate advantages.
- The concern is raised by the lower promoter holding.
- Investors with cash surpluses may think about investing for a long-term payoff.
Objective of the IPO
Sula Vineyards Limited will not receive any proceeds of the Offer for Sale by the Selling Shareholders.
Opening Date
| Dec 12, 2022
|
Closing Date
| Dec 14, 2022
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Issue type
| Book Built Issue IPO
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Face Value
| ₹2 per share
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Issue Price
| ₹340 to ₹357 per share
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Lot Size
| 42 Shares
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IPO Price
| ₹ 960.35 Cr
|
Listing At
| NSE, BSE
|
Allotment, Listing & Refund Details
Finalization of Basis of Allotment
| Dec 19, 2022
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Initiation of Refunds
| Dec 20, 2022
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Credit of Equity Shares
| Dec 21, 2022
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Listing Date
| Dec 22, 2022
|
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