Sula Vineyards IPO opens today to raise ₹960 crore; what analysts say

Sula Vineyards Ltd. (SVL), India’s largest wine producer and seller, is coming out with an initial public offer (IPO) from December 12 to December 14.

At a time when most international markets are not seeing much growth, the primary market in India is lively, with three IPOs set to launch this week, raising over ₹1,857 crore.

Sula Vineyards to raise ₹960 crore

The Nashik-based winemaker, Sula Vineyards, is all set to raise ₹960 crore through its IPO, with a price band between ₹340 and ₹357 per share.

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SVL currently produces 56 wine labels, with prominent brands like Sula, Satera, Madera, Dindori, and Dia. It produces its wines at six production facilities in Maharashtra and Karnataka, two of them leased, with its flagship facility in Nashik, Maharashtra.

SVL’s consolidated revenue was ₹453.9 cr in FY22. In H1 FY23, Sula reported consolidated revenue of ₹224.1 cr.

IPO is an offer for sale (OFS)

This offer is entirely an offer for sale (OFS) by selling shareholders, which means that the company will not receive any proceeds from the offer that could have been used for debt repayment or expansion purposes.

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Analysts at Choice Broking and Canara Bank Securities have assigned a “subscribe” rating for this issue. Some experts advise investors that the fact that it is an offer for sale adds risk to the offer. The brokerage firm, Swastika, recommended this issue only for “high-risk investors”.