Sula Vineyards IPO

Sula Vineyards Limited is the leading wine producer and seller in India as of March 31, 2021. Since Fiscal 2009, they have consistently held the top spot in the Indian wine market in terms of sales volume and value (based on total operating revenue). In Fiscal 2012, they achieved a market share of 50% by value in the local 100% grapes wine market (Source: Technopak Report). Sula Vineyards IPO will hit the stock market in 12 December 2022.

About Sula Vineyards

They have steadily expanded their market share (based on their total income from operations), going from 33% in the 100% grape wine category in Fiscal 2009 to 52% in value in Fiscal 2020, and then going up to 52.6% in Fiscal 2021. (Source: Technopak Report).

Additionally, they are the market leader in all four price ranges, including “Elite” (INR 950+), “Premium” (INR 700-950), “Economy” (INR 400-700), & “Popular” (INR 400).

In Fiscal 2021, they had a higher share of about 60% by value in the “Elite” and “Premium” categories compared to their overall market share of 52.6% in the Indian wine industry.

Additionally, they are acknowledged as the industry leader in all types of wine, including red, white, and sparkling wines.

Business

In Fiscal 2021, Sula Shiraz Cabernet has the highest value of any wine sold in India. Their Sula Shiraz Cabernet gross billings for the fiscal year 2022 were $918.26 million.

The “Wine Tourism Business” includes the ownership & management of wine tourism venues, such as vineyard resorts & tasting rooms.

Their business can be broadly divided into two categories: the production of wine, the importation of wines & spirits, the distribution of wines and spirits, and the sale of services.

The Company’s senior operating decision-makers, however, monitor and assess the operating result of the Group as a single operating segment of manufacture, purchasing, and sale of alcoholic wines and spirits because the Wine Tourism Business is incidental and complements the overall Wine Business.

Brands

They sell wines under a variety of well-known names. Popular brands including “RASA,” “Dindori,” “The source,” “Satori,” “Madera,” & “Dia” are also available, with the company’s main brand “Sula” serving as the “category creator” of wine in India.

Currently, they manufacture 56 different wine labels in the Indian states of Maharashtra & Karnataka at four owned & two leased production sites.

Additionally, as of January 28, 2022, they had a significant social media following with about 103,000 Instagram followers, 123,000 Facebook likes, & 14,000 Twitter followers, placing them among the top ten vineyards in the world.

One of the world’s marketplaces for alcoholic beverages is India with the quickest growth from a small base of 1.3 litres per capita to 2.7 litres in 2010.

Sula Vineyards IPO

Sula Vineyards Limited, headquartered in New Delhi has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 25,546,186 equity shares on 15 July 2022.

The offer doesn’t includes a fresh issue and there is offer for sale (OFS) of 25,546,186 equity shares by the promoters mentioned in the DRHP. They are not looking for any Pre-IPO placement in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
		31-Mar-22	31-Mar-21	31-Mar-20
Total Assets		758.56	751.60	831.04
Total Revenue		456.70	421.53	523.21
Loss After Tax		52.14	3.01	(15.94)

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2020	(2.01)	(2.01)	3
Financial Year 2021	0.38	0.38	2
Financial Year 2022	6.53	6.53	1
Weighted Average	3.06	3.06

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

They feel that the following qualitative factors & business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the offer price:

• High entry hurdles
• With the top brand “Sula,” India’s wine market has a well-established leader.
• India’s largest wine producer, with the broadest and most creative product line, and an effective production system.
• Largest wine sales presence and distribution network.
• Secured raw material supply through long-term arrangements that are unique to Sula.
• Leader and innovator in India’s wine tourism industry.
• Early uptake and a sustainability-focused approach
• Board with experience and top executives with qualifications.

Sula Vineyards 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

1. All financial data for listed industry peers is on a standalone/consolidated basis and comes from the audited consolidated/standalone financial statements of the respective firms for the year ending March 31, 2021, which can be found on the Stock Exchanges’ websites.
2. The P/E ratio is calculated by dividing the closing market price of equity shares on the NSE on July 14, 2022 by the diluted EPS derived from the peer group company’s annual report for the year ended March 31, 2021.

Sula Vineyards IPO Details

IPO Opening Date	12 December 2022
IPO Closing Date	14 December 2022
Issue Type	Book Building
Face Value	1 per share
IPO Price	INR 340 to 357 per equity share
Market Lot	42
Min Amount	14994
Listing At	BSE, NSE
Issue Size	960.35 Cr
Fresh Issue	0
Offer for Sale	25,546,186 equity shares

Sula Vineyards IPO Date

Sula Vineyards Limited IPO opening date is 12 December 2022, and the closing date is 14 December 2022. The Sula Vineyards issue may list in 23 December 2022.

IPO Opening Date	12 December 2022
IPO Closing Date	14 December 2022
Basis of Allotment Date	20 December 2022
Initiation of Refunds	21 December 2022
Credit of Shares to Demat Account	22 December 2022
IPO Listing Date	23 December 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum 1 lot based on availability

Sula Vineyards India Limited IPO Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Sula Vineyards IPO.

Sula Vineyards IPO GMP

Sula Vineyards Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
December 2022
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Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Sula Vineyards Limited IPO Review

Sula Vineyards Limited IPO review : If you are looking for answer of Sula Vineyards IPO is good or bad then you can apply for this this IPO for Listing gain and long term.

Sula Vineyards Limited IPO Risk

• 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.

Other Threats

1. Their capacity to strengthen their brands will determine whether their business plan is successful, as they place a lot of reliance on their brand portfolio.
2. Due to the concentration of their processing facilities, raw materials, and business operations in western and south-western India, any significant social, political, economic, or seasonal disruptions, natural disasters, or civil unrest in these areas could have a negative impact on their operations, financial results, and future cash flows.
3. Alcoholic beverage advertising is prohibited in India, hence companies are unable to use conventional methods to market their goods.
4. The coronavirus pandemic has negatively impacted our operations and business, and it is impossible to anticipate how much more of an impact it will have in the future.

Sula Vineyards Limited IPO Brokerage views

Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Sula Vineyards IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Sula Vineyards Limited IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
12 December 2022	1
13 December 2022	2
14 December 2022	3

Sula Vineyards Limited Management

Rajeev Samant, their Promoter & Managing Director, who founded the company in 2003 & has a wealth of knowledge in the Indian wine market, serves as their leader.

The group’s capable management is powerful & knowledgeable. Their senior management team, which is made up of individuals with considerable knowledge, expertise, & experience in the world’s alcoholic beverage sector, is qualified & experienced.

In their quest to expand their enterprises, they have a sizable competitive advantage thanks to the expertise & experience of their senior management team.

They take pleasure in offering a solid and encouraging work environment, and in 2021, the Great Place to Work Institute in India recognized them as a “Great Place to Work.” they make sure that there is diversity & inclusivity at work.

Sula Vineyards Limited‘ Promoters

• Rajeev Samant

Principal Shareholder’s Holding

Pre Issue Share Holding	28.01%
Post Issue Share Holding

Sula Vineyards Limited Prospectus