Sula Vineyards IPO: Wine-maker files draft paper with SEBI

New Delhi: Leading wine producer Sula Vineyards has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). The public issue will be entirely an offer for sale (OFS) aggregating to 25,546,186 equity shares by the promoter, investors and other shareholders, according to the draft red herring prospectus (DRHP) filed with Securities and Exchange Board of India (Sebi).

Promoter, founder and CEO Rajeev Samant, and investors such as Cofintra, Haystack Investments Limited, Saama Capital III, Ltd, SWIP Holdings Limited, Verlinvest S.A and Verlinvest France S.A. Sula Vineyards are selling their stakes through the OFS route.

Sula Vineyards has been recognized as the market leader across wine variants, including red, white and sparkling wines. 

The company distributes wines under a bouquet of popular brands such as Sula, its flagship brand, besides other popular brands like RASA, Dindori, The Source, Satori, Madera & Dia.

Currently, it produces 56 different labels of wines across 13 distinct brands at its four owned and two leased production facilities located in Maharashtra and Karnataka.

The Nashik-based wine maker is one of the fastest growing alcoholic beverage companies in India as of March 31, 2021 and has grown at a CAGR of 13.7 per cent between fiscals 2011 and 2021, according to Technopak report as mentioned in the DRHP.

On the basis of total revenue from operations, it has gained market share from 33 per cent in fiscal 2009 in 100 per cent grapes wine category to 52 per cent in value in fiscal 2020 and further increased to 52.6 per cent in fiscal 2021.

The company's revenue from operations increased by 8.60 per cent from Rs 417.96 crore in Fiscal 2021 to Rs 453.92 crore in Fiscal 2022 and clocked a profit of Rs 52.14 crore in the financial year FY22 against Rs 3.01 crore in the previous year.

Kotak Mahindra Capital Company, CLSA India and IIFL Securities are the book running lead managers. The equity shares are proposed to be listed on BSE and NSE.

Reliance Corporate Advisory Services, a wholly-owned subsidiary of Reliance Capital, in 2018 sold a 19.05 per cent stake in Sula Vineyards for Rs 256 crore.