Sula Vineyards Limited is the India’s largest wine producer and seller as of March 31, 2021. The company have been a consistent market leader in the Indian wine industry in terms of sales volume and value.
The company’s business can be broadly classified under two categories:
- The production of wine, the import of wines and spirits, and the distribution of wines and spirits (the “Wine Business”); and
- The sale of services from ownership and operation of wine tourism venues, including vineyard resorts and tasting rooms (the “Wine Tourism Business”)
The company distribute wines under a bouquet of popular brands include “RASA,” “Dindori”, “The source,” “Satori”, “Madera” & “Dia” with its flagship brand “Sula” being the “category creator” of wine in India. Currently, Sula Vineyards produce 56 different labels of wine at four owned and two leased production facilities located in the Indian states of Maharashtra and Karnataka.
Sula Vineyards serviced close to 8,000 hotels, restaurants and caterers, which makes company the leader in terms of footprint among wine players in India. The company have tie-ups with distributors in Maharashtra, Haryana, Delhi, Goa and Punjab. Sula Vineyards have managed to build the largest distribution network among wine companies in India, with close to 13,000 retail touchpoints across the country in 2021.
The company also have a strong direct to consumer (“D2C”) selling channel primarily through our Wine Tourism Business facilities in Nashik and Bengaluru. Sula Vineyards D2C sales were ₹242.01 million during the Financial Year ended March 31, 2022. The company’s products are available over various ecommerce platforms.
Sula Vineyards Limited had entered into long-term supply arrangements (of up to 12 years) with grape growers for approximately 2,160 acres as of March 31, 2022.
Sula Vineyards IPO – Details
| IPO Opening Date | 12 December 2022 |
| IPO Closing Date | 14 December 2022 |
| Issue Type | Book Built Issue IPO |
| Issue Size | ₹960.35 Crore |
| Offer For Sale | 2,69,00,530 shares |
| Face Value | ₹2 per equity share |
| IPO Price | ₹340 – ₹357 |
| Market Lot | 42 Shares |
| Min Order | 42 Shares |
| Listing At | BSE, NSE |
| Register | KFin Technologies Limited |
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Sula Vineyards IPO – Date Schedule
| IPO Open Date | 12 December 2022 |
| IPO Close Date | 14 December 2022 |
| Basis of Allotment Date | 19 December 2022 |
| Initiation of Refunds | 20 December 2022 |
| Credit of Shares to Demat Account | 21 December 2022 |
| IPO Listing Date | 22 December 2022 |
Sula Vineyards IPO – Lots Size & Price
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 42 | 14,994 |
| Retail (Max) | 13 | 546 | 1,94,922 |
| S-HNI (Min) | 14 | 588 | 2,09,916 |
| B-HNI (Min) | 67 | 2814 | 10,04,598 |
Is Sula Vineyards good for Investment?
Sula Vineyards Limited is one of India’s finest wine-producing and marketing companies. They are also the fastest-growing company in the segment in Indian Market. The company has achieved an annual growth rate of 13.7% between the fiscal 2011 and 2021. And this growth rate makes them a top wine-selling firm.
The company makes revenue from wine manufacturing and services sales with their wine tourism.
Competitive Strengths
- High barriers of entry;
- Established market leader in the Indian wine industry with the leading brand “Sula”;
- Largest wine producer in India with the widest and innovative product offering supported by an efficient production mechanism;
- Largest wine distribution network and sales presence;
- Secured supply of raw material with long term contracts exclusive to Sula;
- Leader and pioneer of the wine tourism business in India;
- Early adoption and focus on sustainability; and
- Experienced Board, qualified senior management team.
Company Promoters
- Rajeev Samant
Company Financials
| Particulars | Total Revenue | Total Expense | Profit After Tax |
|---|---|---|---|
| 31 March 2020 | 523.19 | 472.70 | -15.94 |
| 31 March 2021 | 421.51 | 357.00 | 3.01 |
| 31 March 2022 | 456.70 | 340.62 | 52.13 |
| 30 September 2022 | 225.75 | 161.45 | 30.50 |
Object Of The Issue
- The company will not receive any proceeds of the Offer for Sale by the Selling Shareholders.
Sula Vineyards IPO Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 2 | Unitied Spirits Limited | 69.07 |
| 2 | 2 | Radico Khaitan Limited | 45.94 |
| 3 | 1 | United Breweries Limited | 116.82 |
Sula Vineyards IPO Strengths
- Largest wine producer in India with the widest and innovative product offering supported by an efficient production mechanism.
- Largest wine distribution network and sales presence.
- Early adoption and focus on sustainability.
- Experienced Board, qualified senior management team.
Sula Vineyards IPO Risks
- Their industry is governed by a license & excise regime with shifting laws, rules, & regulations and legal ambiguities, such as the unfavorable application of corporation and tax laws.
- They profit from the high import taxes India imposes on imported foreign wines, but these taxes may be decreased or eliminated in the future, which would be detrimental to their wine business.
- The quality of wine grapes, which serve as their primary raw material, may be impacted by unfavorable weather circumstances.
- Any interruptions in the delivery of their raw materials could have a negative & significant impact on their operations.
- State legislation may prevent them from changing the retail prices of their goods.
- Consumers’ tastes & preferences could change, and they might stop favoring wine.
Sula Vineyards IPO Promoter Holding
| Pre Issue Share Holding | 28.44% |
| Post Issue Share Holding | 27.33% |
Sula Vineyards IPO Prospectus
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://www.sulavineyards.com/ |
Sula Vineyards IPO Registrar
| KFin Technologies Limited Selenium, Tower B, Plot No 31 and 32, Financial District, Nanakramguda, Serilingampally Hyderabad, Rangareddi 500 032, Telangana, India Tel: +91 40 6716 2222 E-mail: sula.ipo@kfintech.com Website: www.kfintech.com |
Sula Vineyards IPO Lead Manager(s)
| 1. CLSA India Private Limited 2. IIFL Securities Limited 3. Kotak Mahindra Capital Company Limited |
Sula Vineyards IPO FAQs
| What is Sula Vineyards IPO? Sula Vineyards IPO is a main-board IPO. The issue is priced at ₹340 to ₹357 per equity share. The IPO is to be listed on BSE & NSE. |
| When Sula Vineyards IPO will open? The IPO is to open on 12 December 2022 for QIB, NII, and Retail Investors. |
| What is Sula Vineyards IPO Investors Portion? The investors’ portion for QIB – 50%, NII – 15%, and Retail – 35%. |
| How to Apply the Sula Vineyards IPO? You can apply Sula Vineyards IPO via ASBA online via your bank account. You can also apply for ASBA online via UPI through your stock brokers. You can also apply via your stock brokers by filling up the offline form. |
| How to Apply the Sula Vineyards IPO through Angle One? Log in to Angle One Application with your credentials. Select the IPO. You will see the IPO Name “Sula Vineyards”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Angle One. |
| How to Apply the Sula Vineyards IPO through 5 Paisa? Log in to 5 Paisa Application with your credentials. Select the IPO. You will see the IPO Name “Sula Vineyards”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with 5 Paisa. |
| How to Apply the Sula Vineyards IPO through Upstox? Log in to Upstox Application with your credentials. Select the IPO. You will see the IPO Name “Sula Vineyards”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Upstox. |
| How to Apply the Sula Vineyards IPO through IIFL? Log in to IIFL Application with your credentials. Select the IPO. You will see the IPO Name “Sula Vineyards”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with IIFL. |
| What is Sula Vineyards IPO Size? Sula Vineyards IPO size is ₹960.35 Cr. |
| What is Sula Vineyards IPO Price Band? Sula Vineyards IPO Price Band is ₹340 to ₹357. |
| What is Sula Vineyards IPO Minimum and Maximum Lot Size? The minimum bid is 42 Shares with ₹14,994 amount while the maximum bid is 546 shares with ₹1,94,922. |
| What is the Sula Vineyards IPO Allotment Date? Sula Vineyards IPO allotment date is 19 December 2022. |
| What is the Sula Vineyards IPO Listing Date? Sula Vineyards IPO listing date is 22 December 2022. The IPO is to list on BSE and NSE. |
