Sula Vineyards IPO to Launch Soon as Company Files Documents; Prices, dates, key details

Sula Vineyards, India’s largest wine producer, has filed draft documents with market regulator Securities and Exchange Board of India, or SEBI, to raise capital through an initial public offering. Sula’s IPO will be entirely a sell offering, with up to 25,546,186 listed, with selling shareholders receiving all proceeds. The Nashik-based company has not yet finalized the IPO date or price, but said the shares are worth a nominal value of Rs 2 each.

This is the first time that a pure play wine producer in India has applied for an IPO. The IPO of Sula Vineyards is also the second such issue in recent times by which a company in the liquor and spirits segment has filed its papers. In June, whiskey maker Officers Choice Allied Blenders & Distillers filed its draft Red Herring prospectus, or DHRP, with Sebi.

The wine company, based in Nashik, Maharashtra, is backed by Verlinvest, a Belgian consumer-focused family office. Verlinvest and Verlinvest France will sell up to 7,191,835 and 4,990,920 shares of the company via the IPO of Sula. The managing director and CEO of the wine company, Rajeev Samant, meanwhile, will offer up to 1,171,504 shares in the public offering.

“The electronic filing of the DRHP with Sebi has been made. The IPO consists only of an OFS component, under which Verlinvest and the promoter group are among the major selling shareholders,” a source told Moneycontrol earlier. Another key promoter, Cofintra will sell up to 7,191,835 shares through the initial public offering of Sula Vineyards.

The price range and minimum bid lot are decided by the Company, acting through the IPO Committee, in consultation with the Head of Book Management.
directors and will be announced in the newspapers at least two days before the launch date of the offer.

The purpose of the offer is to — carry out the offer for sale of a maximum of 25,546,186 shares by the selling shareholders; and obtain the benefits of listing the shares on the stock exchange, the company said in its DHRP.

Kotak Mahindra Capital, CLSA India and IIFL Securities are lead managers of Sula’s IPO. On the other hand, KFinTech is the problem registrar.

The cultivation of wine grapes, the main raw material of the company’s activities, is concentrated in the western and southwestern states of India. Its wine processing units are also located in West and South West India, with our flagship plant located in Nashik, Maharashtra, and our wine processing units located in Nashik and Dindori in Maharashtra, and in Bengaluru and Basavakalyan in Karnataka. Sula holds an impressive market share in the domestic wine industry, thanks to its extensive wine portfolio.

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