InvestorQ : Can you tell me about the proposed IPO of Sula Vineyards?
rhea Babu made post

Can you tell me about the proposed IPO of Sula Vineyards?

Riya Dwivedi answered.
1 month ago

Sula Vineyards, which set up its first winery in the year 1999 is planning to come out with a Rs1,400 crore IPO. Currently, Sula Vineyards has more than 13 brands under its name which are extensively sold across a distribution network that covers 24 major states across India. While the IPO is yet to be filed with SEBI, it is expected that the draft red herring prospectus (DRHP) for the public issue will be filed in the next few weeks. From that point, SEBI takes 2-3 months to give its observations on the DRHP.

The IPO will most likely be a mix of fresh issue and offer for sale by existing shareholders and early investors. Interestingly, there are several private equity investors holding stakes in Sula Vineyards. These include DSG Consumer Partners, Everstone Capital, Saama Capital and Verlinvest. The issue is likely to be lead managed by IIFL Securities, Kotak Mahindra Capital and CLSA India. The road shows will commence only after the SEBI approval.

Sula is based out Nashik in Maharashtra and can be reached in about 3-4 hours by road from the city of Mumbai. Sula currently operates over 2,000 acres of vineyards under management and most of them are on contract with farmers in Nashik and adjoining areas. Sula dominates the Indian wine market with a market share of 52% in India. Drinking wine on a social level is just picking up in the Indian market and they hope to ride the same.