| Opening Date |
12, December 2022 |
| Closing Date |
14, December 2022 |
| Refund Initiation |
20, December 2022 |
| Listing Date |
22, December 2022 |
| Face Value |
₹2 per equity share |
| IPO Price Band |
₹340 to ₹357 per equity share |
| Minimum Order Quantity |
42 Shares |
| Issue Size |
₹960.35 Cr |
The month of December 2022, saw a couple of IPOs getting listed in the secondary market. Amongst those were Dharmaj Crop Guard and Uniports India Ltd. Dharmaj Crop Guard generated listing gains of over 12% for retail investors, the listing for Uniports are awaited. Now, as we come towards the end of this calendar year, there are some IPOs queued to be going live - among which is - Sula Vineyards Ltd. In this article, let’s study the details of this IPO which will eventually help you to decide if it’s investment-worthy or not!
About the Company -
Incorporated in the year 2003, Sula Vineyards Ltd stands as the largest wine producer and seller in India as of FY2022-23. The business for the company is broadly classified into two categories:-
(i) The production of wine, the import & 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”)
The wine manufacturing company also distributes wines under a bouquet of popular brands including "RASA," "Dindori", "The source," "Satori", "Madera" & "Dia" along with its flagship brand "Sula“
As of Q2FY23, company has presence in 25 states & 6 union territories and globally in over 20 countries
The financials of the company for the last three financial years are given as below:
| Particulars |
Three month period ended June 30, 2022 |
As of and for the Financial Year ended March 31 |
| 2022 |
2021 |
2020 |
| Equity share capital |
16 |
16 |
15 |
15 |
| Networth |
449 |
395 |
305 |
300 |
| Total Borrowings |
215 |
229 |
301 |
368 |
| Total Income |
226 |
457 |
422 |
523 |
| Profit after Tax |
31 |
52 |
3 |
-16 |
| Earnings per Share (diluted) |
3.8 |
6.8 |
0.4 |
-2.1 |
| Return on Equity |
14% |
13% |
1% |
-5% |
| Return on Capital Employed |
21% |
21% |
11% |
4% |
| Net asset value |
55 |
50 |
40 |
40 |
| (In ₹ per share) |
all numbers stated are in crore, except share data.
*not annualized
Sula Vineyards Ltd Ltd details -
Let’s now move onto the main part of this article. Here, we’re going to be looking at some of the most important details of this upcoming IPO 2023 viz - Sula Vineyards Ltd Ltd date and its share price.
Sula Vineyards Ltd Ltd issue date -
According to the Red Herring Prospectus filed by the company, the public issue of the equity shares is going live from December 12 and will be available for subscription until December 14, 2022.
Sula Vineyards Ltd Ltd issue size -
The total issue size of the latest Sula Vineyards Ltd Ltd is declared to be ₹960.34 crores. This is a total offer for sale. The company is offloading 26.90 million equity shares in OFS.
50% of the offer is for QIBs (Qualified Institutional Buyers), 35% for retail investors, and the balance 15% for NIBs (Non-institutional Investors).
Sula Vineyards Ltd Ltd share price
The price band of the company’s upcoming IPO is declared to range between ₹340 to ₹357 per equity share
Sula Vineyards Ltd Ltd listing
Since the IPO of Sula Vineyards Ltd Ltd is from the mainboard, it would be listed on both - the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE)
Sula Vineyards Ltd Ltd objectives
The net proceeds of the Issue, i.e. gross proceeds of the Issue are proposed to be utilized in the following manner:
- To carry out the Offer for Sale of up to 26,900,530 Equity Shares
- To achieve the benefits of listing the Equity Shares on the Stock Exchanges
Sula Vineyards Ltd Ltd Strengths
- The Wine market in India is concentrated with high barriers to entry
- Largest wine producer in India with leading brand “Sula”
- Widest and innovative product offering supported by an efficient production mechanism
- Secured supply of raw material with long-term contracts exclusive to Sula
- Leader and pioneer of the wine tourism business in India
Sula Vineyards Ltd Ltd risks
- Adverse climatic conditions may impact the quality of wine grapes ;its key raw materials
- 35% of Revenue contributed from top 5 customers
- The business is subject to legal & regulatory requirements
- Indian Wine market is relatively young in India
Conclusion
If you wish to become a part of this exciting IPO opportunity, you will need to have an online demat and trading account, which will help you get shares of your favorite companies. To get an online DEMAT account for Free*, all you have to do is sign-up with Motilal Oswal and get started.
If you are an existing customer with Motilal Oswal, you can now invest in the IPOs in just one click through UPI payment!
It’s all easy. It’s all good.
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