Winemaker Sula Vineyards get Sebi's nod to float IPOs to raise funds

New Delhi: Polymer manufacturer Sah Polymers and leading wine producer Sula Vineyards have received capital markets regulator Sebi's approval to raise funds through initial public offerings (IPOs).

The two companies, which had filed preliminary IPO papers with the Securities and Exchange Board of India (Sebi) during April and July 2022, obtained observations during October 31-November 3, an update with the regulator showed on Monday.

In Sebi's parlance, the regulator's observation means its go-ahead to launch an initial share sale.

Going by the draft papers, Sah Polymers' IPO will be a fresh issue of 1,02,00,000 equity shares, with no offer-for-sale component.

The company proposes to utilise net proceeds from the fresh issuance of equity shares towards manufacturing of new Flexible Intermediate Bulk Containers (FIBC) plant and expansion of production capacity; funding working capital requirements for the new project; and payment of certain debt.

The Udaipur-based company is primarily engaged in manufacturing and selling of polypropylene (PP)/ high density polyethylene (HDPE) FIBC bags, woven sacks, HDPE/PP woven fabrics and woven polymer based products.

The initial share-sale of Sula Vineyards is entirely an offer-for-sale (OFS) of aggregating to 25,546,186 equity shares by the promoter, investors and other shareholders, according to the draft papers.

Those offering shares in the OFS are 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.

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

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.