Wine maker Sula Vineyards gets SEBI nod for IPO

The issue with a face value of Rs 2 per equity share is a complete offer for sale (OFS) aggregating to 25,546,186 equity shares.  

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Mumbai-based The capital markets regulator, Securities and Exchange Board of India (SEBI), has granted permission to Sula Vineyards, the nation’s largest wine producer and seller and a market leader in the Indian wine sector in terms of sales volume and value since Fiscal 2009, to raise money through an IPO (IPO). In July of this year, the company had filed its drafting papers.

The issue with a face value of Rs 2 per equity share is a complete offer for sale (OFS) aggregating to 25,546,186 equity shares.

Sula established its first vineyard in 1996, and with the introduction of Sauvignon Blanc, Chenin Blanc, Zinfandel, Riesling, Red Sparkling, and dessert wine options in 2000, it became the first company in India to produce varietal wines. The country’s first vineyard resort opened its doors in 2008, and in the same year, the winery created “SulaFest,” India’s first music event with a wine theme. The winery opened its first wine tasting room in Fiscal 2005 at its plant in Nashik, Maharashtra. According to attendance, “SulaFest” is widely acknowledged as the biggest wine music festival in India and one of the biggest wine music festivals in Asia. At its “Domaine Sula” location in Karnataka, it opened a wine tasting room in the 2017 fiscal year.

Red, white, and sparkling wines all fall under the category of wine for which Sula is recognised as the industry leader. The company distributes wine under a variety of well-known labels, including RASA, Dindori, The Source, Satori, Madera & Dia in addition to Sula, its main brand. Currently, it has four owned and two leased production facilities in the Indian states of Maharashtra and Karnataka, where it produces 56 different wine labels under 13 different brands.

With the flagship facility in Nashik, Maharashtra, and our wine processing units in Nashik and Dindori in Maharashtra, as well as Bengaluru and Basavakalyan in Karnataka, Sula’s facilities are also spread throughout the west and southwest of India.

Sula’s Shiraz Cabernet had gross billings of Rs 91.83 crore in FY22 and was India’s top-selling wine by value in fiscal 2021. It recently took home five silver and four bronze medals from the “Decanter World Wine Awards, 2022,” while its Brut Tropicale took home a gold from the same competition.

The company’s operational revenue increased by 8.60%, from Rs. 417.96 crore in Fiscal 2021 to Rs. 453.92 crore in Fiscal 2022, primarily as a result of higher sales of manufactured goods sold under its brands, higher selling prices of wine in a select number of brands and markets, higher revenue due to a greater emphasis on premiumization, positive feedback for its wine tourism business, and higher revenue from other operating income (government grants). In contrast to the previous year’s profit of Rs 3.01 crore, it recorded a profit of Rs 52.14 crore in the fiscal year FY22.

The book running lead managers for the offer are Kotak Mahindra Capital Company Limited, CLSA India Private Limited, and IIFL Securities Limited, while KFin Technologies Limited is the registrar. It is proposed that the equity shares list on both the BSE and NSE.