Against the issue price of Rs 357 apiece, shares of Sula Vineyards were listed at Rs 358 on BSE and at Rs 361 on the National Stock Exchange (NSE), making the landing flat for the investors.
Following the listing, the stock was majorly dumped by the investors as it gyrated in a small range. On an intraday basis, it hit an intraday low of Rs 339 on BSE, dropping over 5% from its issue and listing price.
Analysts suggest that existing investors should hold the stock for the longer term as the issue is fully priced at the current levels. One should not expect immediate fireworks from the counter, considering the subdued sentiments.
Pravesh Gour, Senior Technical Analyst,
said that it had a muted debut despite receiving a good response from investors on both the institutional and retail sides.
“Allottees who applied for the public offering for listing premium are advised to maintain their stop loss at Rs 350 and wait for further upside till Rs 380,” he added.
Sula Vineyards raised a little more than Rs 960 crore from its primary offering, which was sold in the range of Rs 340-357 per share between December 12-14. However, the issue was merely subscribed 2.33 times.
The quota reserved for qualified institutional buyers (QIBs) was subscribed 4.13 times while the one reserved for non-institutional investors (NIIs) and retailers was subscribed 1.51 times and 1.65 times, respectively.
Incorporated in 2003, Nashik based Sula Vineyards is India’s largest wine producer and seller. It has a bouquet of popular brands including Sula, RASA, Dindori, The source, Satori, Madera and Dia, among others.
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