Sula Vineyards, India’s largest wine producer and seller, will launch its initial public offering (IPO) on December 12. The IPO is entirely an offer for sale (OFS), with selling shareholders offloading approximately 2.69 crore equity shares to the public. The IPO will be open for subscription until December 14th. Anchor investors will be able to bid in Sula Vineyards on December 9th, prior to the IPO.
Sula Vineyards announced its plan to raise $9.60 billion through a public offering at a press conference on Wednesday. While they revealed that the IPO shares will be priced at 340 and 357 cents per share.
Dinesh G. Vazirani, J.A. Moos, Karishma Singh, Major A.V. Phatak, Narain Girdhar Chanrai, Ruta M. Samant, and Sanjay Naraindas Kirpalani are also selling shareholders.
In the IPO, the face value of equity shares would be $2 per share.
Qualified institutional buyers (QIBs) will be allocated 50% of the total IPO size for bidding, 15 per cent for non-institutional investors (NIIs), and the remaining 35% for retail individual investors.
The book-running lead managers for the IPO are Kotak Mahindra Capital Company, CLSA India, and IIFL Securities. The offer’s registrar is KFin Technologies.
Sula Vineyards has consistently been a market leader in the Indian wine industry. Sula has come a long way in the last decade. In the 100% grapes wine category, the company’s revenue market share increased from 33% in FY09 to 52% in FY20 and then to 52.6 in FY21.
At its four owned and two leased production facilities in Maharashtra and Karnataka, the company currently produces 56 different labels of wines across 13 district brands.
The company’s revenue from operations in FY22 was 4,539.16 million, with a net sales margin1 of 69.83 per cent and profit after tax of 521.39 million.
The company’s revenue in the first half of FY23 was 2,240.68 million, with a net sales margin of 74.32 per cent and profit after tax of 305.06 million.
In the future, the company intends to continue focusing on its own brands rather than third-party brands that it imports and distributes. In addition, the company will continue to use its distribution capabilities to launch new products. They will also raise wine awareness and consumption, as well as expand into Tier 1 and 2 cities in India.
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