Sula Vineyards Limited IPO: Retail Book Subscribed 99%, overall issue subscribed 59% on Day 2

Sula Vineyards Limited the country's largest wine producer and seller and a market leader in the Indian wine industry in terms of sales volume and value since Fiscal 2009 has received bids of 1,10,99,256 shares against the offered 1,88,30,372 equity shares, at a price band of ₹340-357, according to the data available on the stock exchanges.

Overall the issue was subscribed 0.59 times on the second day of bidding. It was subscribed 0.28 times on the opening day.

Retail Portion was subscribed 0.99 times followed by Non-Institutional segment that saw a response of 0.45 times. The reserved portion for qualified institutional buyer portion are yet to receive any bids. The issue kicked off for subscription on Monday, December 12, and will close on Wednesday, December 14, 2022.

Sula Vineyards Ltd raised Rs 288 crore from foreign and domestic anchor investors including Abu Dhabi Investment Authority, Goldman Sachs, New York State Teachers Retirement System, Ashoka India Equity Investment Trust PLC, Jupiter South Asia Investment Company Ltd, Segantii India Mauritius, Morgan Stanley Asia, Citigroup Global Markets, BNP Paribas Arbitrage ODI, Aditya Birla Sun Life Mutual Fund, HDFC Small Cap Fund, SBI Mutual Fund, ICICI Prudential Life Insurance, HDFC Life Insurance, Aditya Birla Sun Life Insurance, and Max Life Insurance.

Broking houses like Anand Rathi, Ashika Research, AUM Capital, Canara Bank, Choice Equity Broking, ICICI Direct, Indsec Securities, SBICAP Securities, and Ventura Securities have given a "Subscribe" rating to the issue.

The said Brokerages have stated, Sula is a pure play on the wine sector, which currently has a low base (less than 1% of alcobev industry) but is expected to surpass industry growth due to higher acceptability, affordability, perceived health benefits, etc. In addition, considering the higher share of high margin segments in the revenues and focus on owned brand, the company would be able to expand its margin going forward. Its strong position in a high barrier and fast growing segment would help it to gain further in terms of sales in the long run.

Kotak Mahindra Capital Company Limited, CLSA India Private Limited and IIFL Securities Limited are the book running lead managers and KFin Technologies Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.

Source : Equity Bulls

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