(L-R) Mr. Jayasankar Venkatraman (Whole-Time Director, Kotak Mahindra Capital Company Limited), Mr. Chaitanya Rathi (Chief Operating Officer, Sula Vineyards), Mr Rajeev Samant (Founder, Managing Director & Chief Financial Officer, Sula Vineyards Limited), Mr. Bittu Varghese (Chief Financial Officer, Sula Vineyards Limited), Mr. Pankaj Agrawal (Managing Director, Head of India, Corporate Finance & Capital Markets), Mr. Vishal Bangard (Senior Vice President & Head of Equity Capital Markets, IIFL Securities Limited)
Mr. Rajeev Samant, Founder, Managing Director & Chief Financial Officer, Sula Vineyards Limited
MUMBAI, 7 DECEMBER, 2022 (GPN): Sula Vineyards is set to be India’s first pure-play wine manufacturer to make its Dalal Street debut. Sula was launched in 1996 by it’s founder Rajeev Samant and the firm has since grown to become the country’s largest producer and seller of wine.Incorporated in 2003, Nashik-based Sula Vineyards is India’s largest wine producer and seller, as of March 31, 2021. Currently, the company produces 56 different labels of wine from 13 of its own brands and 20 international ones.
Its flagship brand ‘Sula’ is the ‘category creator’ of wine in India.The company also distribute wines under a bouquet of popular brands including “RASA,” “Dindori”, “The source,” “Satori”, “Madera” & “Dia”.
The country’s largest wine maker Sula Vineyards on Wednesday 7th December fixed the price band at ₹340 and ₹357 per share for its ₹960 crore initial public offering (IPO). The company said its IPO will open for subscription on 12 December and will conclude on 14 December and the bidding for anchor investors will open on 9 December, the company said during the IPO announcement at a press meet in Mumbai.
The company’s business is broadly classified under two categories (i) the production of wine, the import of wines and spirits, and the distribution of wines and spirits (the “Wine Business”); and (ii) the sale of services from ownership and operation of wine tourism venues, including vineyard resorts and tasting rooms (the “Wine Tourism Business“)
Currently, the company produces 56 different labels of wine at four owned and two leased production facilities located in the Indian states of Maharashtra and Karnataka.
The company have managed to build the largest distribution network among wine companies in India.The company’s distribution platform included over 50 distributors, 11 corporations, 14 licensed resellers, 7 company depots, and 3 defence units as of September 30, 2022. The company also has over 23,000 points of sale (including over 13,500 retail touchpoints and over 9,000 hotels, restaurants and caterers) as of March 31, 2022.
As of September 30, 2022, the company had a sales force of 141 permanent employees.
The company has fixed 50% of equity shares for qualified institutional buyers, whereas non-institutional investors will get 15% of the shares. Retail bidders will be given the remaining 35% of the stake.
Currently, the company produces 56 different labels of wine at four owned and two leased production facilities, located in the Indian states of Maharashtra and Karnataka.
The IPO will include the sale of shares by MD and CEO Rajeev Samant as well as Belgian investment firms Verlinvest and Cofintra SA, which could value Sula Vineyards as much as ₹2,913 crore at the top end of the price range.Belgium-based Verlinvest has been an investor in Sula since 2010 and has put over $70 million into the company in multiple fundraising rounds.
Kotak Investment Banking, CLSA and IIFL Securities are the book running managers to the IPO and KFin Technologies Limited is the registrar to the offer. Law firms Shardul Amarchand Mangaldas and Trilegal are the legal advisors, as per the draft papers filed with SEBI.
The shares are proposed to be listed on BSE, NSE.
Company Financials
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth | Total Borrowing |
|---|---|---|---|---|---|
| 31-Mar-20 | 831.04 | 523.21 | -15.94 | 299.95 | 368.24 |
| 31-Mar-21 | 751.6 | 421.53 | 3.01 | 304.74 | 301.26 |
| 30-Sep-21 | 717.55 | 160.46 | 4.53 | 344.32 | 262.45 |
| 31-Mar-22 | 758.56 | 456.7 | 52.14 | 395.26 | 228.93 |
| 30-Sep-22 | 770.95 | 225.76 | 30.51 | 449.18 | 214.64 |
| Amount in ₹ Crore | |||||
Sula Vineyards had a net revenue of ₹457 crore in the fiscal year 2022, up 8% from the previous year.
Objects of the Issue
The company will not receive any proceeds of the Offer for Sale by the Selling Shareholders.
Sula Vineyards IPO Details
| IPO Date | Dec 12, 2022 to Dec 14, 2022 |
| Listing Date | [.] |
| Face Value | ₹2 per share |
| Price | ₹340 to ₹357 per share |
| Lot Size | 42 Shares |
| Issue Size | 26,900,530 shares of ₹2 (aggregating up to ₹960.35 Cr) |
| Offer for Sale | 26,900,530 shares of ₹2 (aggregating up to ₹960.35 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not more than 50% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
| Retail Shares Offered | Not less than 35% of the Offer |
| Company Promoters | Rajeev Samant is the company promoter. |
Sula Vineyards IPO Tentative Timetable
Sula Vineyards IPO opens on Dec 12, 2022, and closes on Dec 14, 2022. The Sula Vineyards IPO bid date is from Dec 12, 2022 10.00 A.M. to Dec 14, 2022 5.00 P.M. The Cut-off time for UPI Mandate confirmation is 5 PM on the issue closing day.
| Event | Tentative Date |
|---|---|
| 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 |
Sula Vineyards IPO Lot Size
The Sula Vineyards IPO lot size is 42 shares. A retail-individual investor can apply for up to 13 lots (546 shares or ₹194,922).
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 42 | ₹14,994 |
| Retail (Max) | 13 | 546 | ₹194,922 |
| S-HNI (Min) | 14 | 588 | ₹209,916 |
| B-HNI (Min) | 67 | 2,814 | ₹1,004,598 |
SULA Vineyards IPO Promoter Holding
| Pre Issue Share Holding | 28.44% |
| Post Issue Share Holding | 23.21% |
Sula Vineyards IPO Anchor Investors
Sula Vineyards IPO Anchor investor bid ended on Dec 14, 2022. A total of 26,900,530 shares are offered to Anchor investors.Sula Vineyards IPO Anchor Investor Lock-in Period is Dec 9, 2022 for 50% of equity shares and Apr 24, 2023 for the remaining portion.
- Anchor Investor Bid Date: Dec 9, 2022
- Anchor Portion Size: Rs.960.35 crore (Shares offered * Upper Price)
- Anchor lock-in period end date (50% Shares): Around Jan 30, 2023 (30 Days)
- Anchor lock-in period end date (remaining shares): Around Apr 24, 2023 (90 Days).Ends
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