Sula Vineyards IPO GMP, Price, Dates & Allotment Details 2022

The Sula Vineyards IPO will open on December 12 and close on December 14, 2022. As per the DRHP filed by the company with SEBI, the IPO has an issue size of 26,900,530 shares of ₹ 2 each.

Incorporated in 2003. As of March 31, 2021, Sula Vineyards is India’s largest wine producer and distributor (source: Technopak Report). Since Fiscal 2009, the company has consistently led the Indian wine market in terms of sales volume and value (based on total operating revenue), surpassing 50% market share by value in the local 100% grape wine market in Fiscal 2012. (source: Technopak Report).

A variety of well-known wine brands, including “RASA,” “Dindori,” “The Source,” “Satori,” “Madera,” and “Dia,” are distributed by the company. Its flagship brand, “Sula,” is credited with “creating the category” of wine in India.

Company business can be broadly classified under two categories

1. The “wine business” (the processes of producing wine, importing wine and spirits, and selling such beverages);
2. Selling of services resulting from ownership and management of wine tourism establishments, such as winery resorts and tasting rooms (the “wine tourism business”),

Sula Vineyards IPO – Noteworthy Highlights

• Market leader across all four price segments, being ‘Elite’ (INR 950+), ‘Premium’ (INR 700-950), ‘Economy’ (INR 400- 700) and ‘Popular’ (<INR 400).
• With a higher share of approximately 60% by value in the ‘Elite’ and ‘Premium’ categories in Fiscal 2021, as compared to our overall market share of 52.6% in the Indian wine industry.
• Furthermore, company also recognized as the market leader across wine variants, including red, white and sparkling wines.
• Company gross billings of Sula Shiraz Cabernet in Fiscal 2022 amounted to ₹ 918.26 million.
• Produce 56 different level of wine.

Financial Highlights (Restated)

Particulars	FY 2021-22	FY 2020-21	FY 2019-20
Total Assets	758.56	751.60	831.04
Net Worth	395.26	304.74	299.95
Total Revenue	456.70	421.53	523.21
Profit After Tax	52.14	3.01	(15.94)
Total Borrowing	228.93	301.26	368.24

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Sula Vineyards IPO – Details

According to the DRHP filed in SEBI, company are planning to issue 26,900,530 shares of ₹ 2 each, aggregate up to ₹ [.] crore through this public issue.

Issue Type	Book Built Issue IPO
IPO Price	₹ 340 to ₹ 357 per share
Face Value	₹ 2 per share
Market Lot	42 Shares
Issue Size	26,900,530 shares of ₹ 2 (Aggregating up to ₹ 960.35 Crore)
Offer For Sale	26,900,530 shares of ₹ 2 (Aggregating up to ₹ 960.35 Crore)
QIB Shares Offered	Not more than 50% of the Net offer
NII (HNI) Shares Offered	Not less than 15% of the Offer
Retail Shares Offered	Not less than 35% of the Offer
Listing At	NSE, SME
Promoters	Rajeev Samant

Tentative Timetable – Sula Vineyards IPO

Opening Date	Dec 12, 2022
Closing Date	Dec 14, 2022
Basis of Allotment	Dec 19, 2022
Initiation of Refunds	Dec 20, 2022
Credit of Shares to Demat	Dec 21, 2022
Listing Date	Dec 22, 2022

Promoter Holding – Sula Vineyards IPO

Pre issue shareholding	28.44%
Post issue shareholding	27.33%

SWOT Analysis – Sula Vineyards IPO

STRENGTH

1. High barriers of entry
2. Established market leader in the Indian wine industry with the leading brand “Sula”
3. Largest wine producer in India with the widest and innovative product offering supported by an efficient production mechanism.
4. Largest wine distribution network and sales presence.
5. Secured supply of raw material with long-term contracts exclusive to Sula.
6. Leader and pioneer of the wine tourism business in India.
7. Early adoption and focus on sustainability.
8. Experienced Board, qualified senior management team.

WEAKNESS

1. Unable to adjust retail price of product because for state regulations.
2. Heavily rely on brand portfolio.
3. Company revenue from operations is dependent upon a limited number of customers (which includes state run corporations, wholesalers and independent distributors).
4. Advertising of alcoholic beverage products is restricted in India and company are unable to advertise its products.

OPPORTUNITY

1. India is one of the fastest growing alcoholic beverage markets in the world.
2. Increasing wine awareness and consumption, and penetrating further into Tier-1 and 2 cities in India.
3. Wine market in India will remain concentrated with high barriers to entry due to the nature of the product in addition to the trade barriers prevalent in the alcoholic beverage market.

THREAT

1. Adverse climatic conditions may impact the quality of wine grapes which are company key raw materials.
2. Change in consumer taste and preference.

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Miscellaneous Information

Download Prospectus (PDF)	IPO DRHP IPO RHP
Company Contact Information	Sula Vineyards Limited 901, Hubtown Solaris, N.S. Phadke Marg, Andheri (East), Mumbai 400 069 Maharashtra Phone: +91 22 6128 0606 Email: cs@sulawines.com Website: https://sulavineyards.com/
IPO Registrar	KFin Technologies Limited Phone: 04067162222, 04079611000 Email: einward.ris@kfintech.com Website: https://karisma.kfintech.com/
IPO Lead Manager(s)	1. Kotak Mahindra Capital Company Limited 2. CLSA India Private Limited 3. IIFL Securities Ltd

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