Sula Vineyards Ltd IPO opens today

The initial public offering (IPO) of India’s largest wine producer and seller, Sula Vineyards, has opened for subscription today and will close on Wednesday, December 14.

The issue is entirely an offer-for-sale with 26.9 million shares on the offer, which could fetch Rs 915-960 crore to the promoters and selling shareholders. The price band is fixed at Rs 340-357.

As per iPOWatch, the stock is currently commanding a grey market premium (GMP) of 11 per cent over the upper price band.

Sula is India’s 100 per cent grape wine-market leader with 52 per cent share. The grape wine market itself is 85 per cent of the overall wine segment.

The company also leads across all four price segments–elite (Rs 950 plus), premium (Rs 700-950), economy (Rs 400-700) and popular (below Rs 400), with a higher share of around 61 per cent by value in the elite and premium categories in FY22.

Its business is classified under wine production, import of wines and spirits, and distribution (wine business); and sales from wine tourism venues, including vineyard resorts and tasting rooms (wine tourism business).

Its revenue contribution from its own brands in the wine business rose from 63.6 per cent in FY20 to 84 per cent in FY22 as imports sharply came down from 31 per cent to 7.9 per cent during this period.