If Sula Vineyards lists as per plans, the company would be India’s first pure-play wine manufacturer to make a debut on Dalal Street.
The company has slashed its issue size and is likely to raise about Rs 950-1,000 crore through its initial stake sale. However, the company earlier was eyeing to raise about Rs 1,200-1,400 crore via its IPO.
According to the company’s DRHP, the issue is entirely an offer for sale (OFS) by the promoters and existing shareholders of the company, who will offload about 2.56 crore equity shares from their kitty.
Incorporated in 2003, Sula Vineyards is India’s largest wine producer and seller, as of March 31, 2021. Its flagship brand ‘Sula’ is the ‘category creator’ of wine in India.
The Nashik-based company also distributes wines under a bouquet of popular brands including RASA, Dindori, The source, Satori, Madera and Dia, among others.
Currently, the company produces 56 different labels of wine at four owned and two leased production facilities located in the Indian states of Maharashtra and Karnataka.
Sula has been backed by various private equity funds and institutional investors, including Verlinvest, Everstone Capital, Visvires, Saama Capital, and DSG Consumer Partners.
Belgium-based Verlinvest, which has been an investor in Sula since 2010, put over $70 million into the company via multiple fundraising rounds.
The distribution platform of the company included over 47 distributors, 10 corporations, 23 licensed resellers, 7 company depots, 4 defence units and over 23,000 points of sale as of March 31, 2022.
Capital Company, CLSA India and are the book running managers to the company, whereas KFin Technologies has been appointed as the registrar to the issue.
