Sula Vineyards
Mainboard₹960 Cr issue
+0.28%
Listing gain over issue price
Issue size
₹960 Cr
1 lot at cut-off
₹14,994
Lot size
42shares
Open
12 Dec 2022
Close
14 Dec 2022
Allotment
19 Dec 2022
Listing
22 Dec 2022
Listing performance
Issue price
₹357
Listed at
₹358
Listing-day close
₹331.15
Latest price
₹127.16
Close on 23 Oct 2026
Listing gain
+0.28%
Return since issue
-64.38%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 12 Dec 2022 – 14 Dec 2022
- Listing date
- 22 Dec 2022
- Face value
- ₹2 per share
- Issue price
- ₹357 per share
- Lot size
- 42 shares
- Total issue size
- ₹960 Cr
- Market cap at offer price
- ₹3,006 Cr
- Promoter holding
- 28.44% → 27.33% pre-issue → post-issue
- ISIN
- INE142Q01026
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Kotak Mahindra Capital Co.Ltd.
- Registered office
- 901, Hubtown Solaris, N.S.Phadke Marg, Andheri (East), Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 80,70,158 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 42 shares per lot, in multiples, at ₹357
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 42 | ₹14,994 |
| Retail (max) | 13 | 546 | ₹1,94,922 |
| S-HNI (min) | 14 | 588 | ₹2,09,916 |
| S-HNI (max) | 66 | 2,772 | ₹9,89,604 |
| B-HNI (min) | 67 | 2,814 | ₹10,04,598 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
80,70,158
Anchor portion
₹288 Cr
at ₹357 per share
Valuation and performance
Valuation at offer price
₹357 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 6.53 | — |
| P/E (×) | 54.67 | — |
| Market cap | — | ₹3,006 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 11.45%
- ROCE
- 20.86%
- Debt / equity
- 0.58
- PAT margin
- 11.49%
- NAV per share
- ₹55.34
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Sula Vineyards
Sula Vineyards Limited is India's largest wine producer and seller as of March 31, 2021, serving as a consistent market leader in the Indian wine industry since Fiscal 2009 in terms of sales volume and value. The company produces and distributes wines under 13 distinct Own Brands and 20 international labels (18 wine labels and two spirit labels). Beyond wine production, Sula operates a Wine Tourism Business involving ownership and operation of vineyard resorts and tasting rooms. The company's business model spans production of wines from contracted vineyard farming agreements, importing and distributing international labels, and hospitality services at wine tourism venues. Revenue streams include sales from wine products across off-trade (supermarkets, licensed shops), on-trade (hotels, restaurants, bars), and direct-to-consumer channels, as well as hospitality services revenue.
Company Analysis
from RHPIndia's largest wine producer and seller, offering a portfolio of 56 wine labels across Own Brands and international imports, operating in the alcoholic beverage industry.
Sula Vineyards Limited is India's largest wine producer and seller as of March 31, 2021, serving as a consistent market leader in the Indian wine industry since Fiscal 2009 in terms of sales volume and value. The company produces and distributes wines under 13 distinct Own Brands and 20 international labels (18 wine labels and two spirit labels). Beyond wine production, Sula operates a Wine Tourism Business involving ownership and operation of vineyard resorts and tasting rooms. The company's business model spans production of wines from contracted vineyard farming agreements, importing and distributing international labels, and hospitality services at wine tourism venues. Revenue streams include sales from wine products across off-trade (supermarkets, licensed shops), on-trade (hotels, restaurants, bars), and direct-to-consumer channels, as well as hospitality services revenue.
Wine and spirits productionAlcoholic beverages distributionWine tourism and hospitalityFood and beverages retail
Objects of the Issue
- Offer for Sale of Equity Shares by Selling Shareholders p.24
- Achieve benefits of listing on Stock Exchanges p.24
- Offer for Sale of equity shares by Selling Shareholders; achieve benefits of listing the Equity Shares on the Stock Exchanges p.122
Issue Structure
- Total Issue
- Up to 25,546,186 Equity Shares aggregating up to ₹ [●] million
- Offer for Sale
- Up to 25,546,186 Equity Shares aggregating up to ₹ [●] million
- Price Band
- [●] per Equity Share (Floor Price) to [●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹ 2 per Equity Share
Business Model
The company generates revenue through: (1) Wine Business - manufacturing, importing and distributing wines and spirits through multiple distribution channels (off-trade retail, on-trade hospitality venues, and direct-to-consumer via Wine Tourism facilities); (2) Wine Tourism Business - operating vineyard resorts and tasting rooms generating hospitality services revenue. The company sources wine grapes through long-term supply arrangements with approximately 500 contract farmers and also procures from open market. Distribution occurs through state-run corporations, wholesalers, and independent distributors reaching over 23,000 points of sale including retail touchpoints and hospitality venues.
Business Segments
Production, bottling and distribution of wines under 13 distinct Own Brands including Sula, RASA, Dindori, The Source, Satori, Mosaic, Madera, Samara, York and Dia, across Economy, Popular, Premium and Elite categories
Importation and distribution of 20 international labels (18 wine labels and two spirit labels) from overseas markets to Indian consumers
Ownership and operation of wine tourism venues including vineyard resorts and tasting rooms, generating hospitality services revenue
Production and distribution of wine products including red, white, and sparkling wines under the Sula brand name
Wine tasting, vineyard visits, resort operations, and SulaFest music festival
Production and sale of domestic wines under brands including Sula, RASA, The Source, Dindori, York, Satori, Madera, and Dia, comprising 56 labels across Elite, Premium, Economy, and Popular price categories
Import and distribution of wines and spirits from international producers (18 wine labels and 2 spirit labels)
Ownership and operation of vineyard resorts and tasting rooms, wine tasting sessions, hospitality services, restaurants, and direct-to-consumer wine sales
Manufacture, purchase and sale of wines and spirits under various brands; portfolio of 56 labels under 13 distinct brands as of March 31, 2022
Operation of vineyard facilities, wine tasting rooms, resorts, and wine-themed events including SulaFest; approximately 368,000 people visited the vineyards in Fiscal 2020
The group's entire business comprises manufacture, purchase and sale of alcoholic wine and spirits, operating as a single operational segment. This includes manufacturing of wine products through Artisan Spirits Private Limited subsidiary, trading of wines and spirits, and hospitality services including resort and winery operations.
SWOT Analysis
Strengths
- • Established wine production with significant installed capacity and manufacturing facilities(p.46)
- • Strong solar power infrastructure reducing energy costs(p.53)
- • Experienced management team with industry expertise(p.48)
- • Market leader with dominant brand recognition and consistent share gains(p.192)
- • Largest distribution network among Indian wine companies(p.197)
- • Secured long-term grape supply through contract farming(p.198)
- • Pioneer of wine tourism with strong direct-to-consumer presence(p.198)
- • Widest product portfolio with leadership across all price segments(p.192)
- • Strong profitability improvement and operational efficiency(p.194)
- • Innovation track record in product development and winemaking techniques(p.196)
- • Sustainability leadership with significant renewable energy adoption(p.199)
- • Established as single operating segment in wine and spirits manufacturing, indicating focused business model(p.285)
- • Efficient inventory valuation methodology using weighted average cost method for raw materials and traded goods(p.285)
- • Substantial government grant support through Wine Industry Promotion Subsidy scheme providing 80% VAT refund(p.330)
- • Reduced financial leverage with debt-to-equity ratio declining from 1.23 to 0.58 over three years(p.322)
- • Recovered profitability with net profit of ₹521.39 million in FY2022 from loss of ₹156.82 million in FY2020(p.309)
- • Market leadership in domestic wine industry(p.343)
- • Dominant market share across premium categories(p.343)
- • Largest distribution network among wine companies(p.344)
- • Leadership in wine tourism(p.344)
- • Strong financial recovery post-COVID(p.345)
- • Improved profitability metrics(p.345)
- • Strong debt reduction trajectory(p.333)
- • Sustainability and ESG initiatives(p.345)
Weaknesses
- • Outstanding legal proceedings involving company, subsidiary, promoter and directors diverting management attention(p.45)
- • Significant outstanding legal liabilities with quantifiable amounts across multiple proceedings(p.45)
- • High employee attrition rate in key roles(p.48)
- • Dependence on key management personnel and limited talent pool in wine industry(p.48)
- • High capital intensity of business with significant fixed costs(p.47)
- • Reliance on leased production facilities expiring in 2024(p.51)
- • Significant borrowings and debt obligations constraining financial flexibility(p.51)
- • High days sales outstanding indicating collection risks(p.48)
- • Pending regulatory approvals and licenses affecting operations(p.49)
- • Related party transactions representing significant portion of revenues(p.54)
- • Promoter pledge of significant shareholding to lender(p.55)
- • Historical corporate records missing affecting audit trail(p.57)
- • Concentrated geographic presence and market dependency(p.169)
- • High inventory requirements due to single annual harvest cycle(p.194)
- • Low profitability despite revenue growth in wine tourism business(p.188)
- • Significant reliance on off-trade channel creating sales concentration(p.217)
- • High dependence on few customers with top customer representing 15.3% of revenue(p.305)
- • Significant disputed excise duty liability of ₹1,158.95 million pending resolution(p.328)
- • Material contingent tax liabilities including income tax appeals of ₹46.89 million(p.309)
- • Subsidiary Artisan Spirits with substantial net-worth erosion despite management's recovery expectations(p.324)
- • Large inventory balance of ₹1,622.62 million indicating working capital concentration(p.295)
- • Significant dependence on limited customer base(p.346)
- • High working capital requirements and inventory management challenges(p.347)
- • Elevated days inventory outstanding(p.347)
- • Inventory Turnover Ratio decline(p.333)
- • Ongoing litigation and regulatory proceedings(p.378)
- • Recent acquisition integration challenges(p.348)
- • Material creditor concentration risk(p.383)
- • Pending regulatory approvals for key operations(p.386)
- • Missing required licenses for sales operations(p.386)
- • Intellectual property infringement risk(p.387)
Opportunities
- • Expansion into Tier 2+ cities in India with wine consumption growth(p.48)
- • Growth in wine consumption market in India(p.46)
- • Strategic partnerships with existing and new partners(p.47)
- • Expansion of contracted grape cultivation area(p.47)
- • Strengthening relationships with distributors and retailers(p.47)
- • Digital marketing expansion for wine awareness(p.49)
- • Large underpenetrated domestic market with significant growth potential(p.193)
- • Expansion into underserved Tier-1 and Tier-2 cities(p.202)
- • Projected market growth at strong CAGR through 2025(p.165)
- • Premiumization trend favoring high-margin elite and premium segments(p.166)
- • Wine tourism expansion opportunity with international benchmarks(p.205)
- • Favorable regulatory environment supporting wine as distinct category(p.175)
- • Rising consumer awareness driven by health perceptions and lifestyle trends(p.174)
- • Expansion through acquisition as evidenced by business combination with Artisan Spirits adding ₹68.73 million in goodwill and intangible assets(p.292)
- • Growing revenue from hospitality services including resort and winery operations(p.286)
- • Significant government incentive support with ₹353.45 million government grants accrued in FY2022(p.330)
- • International market presence with Sula International Limited subsidiary and overseas exports generating ₹94.78 million revenue(p.330)
- • Low per capita wine consumption in India(p.344)
- • Growing eligible alcohol consumer base(p.344)
- • Fast-growing Indian alcoholic beverage market(p.344)
- • Expansion into new geographic markets(p.344)
- • Premiumization strategy(p.369)
- • Wine Tourism Business expansion(p.344)
- • Strong brand portfolio and social media presence(p.344)
Threats
- • Licensing and excise regime with changing laws, rules and regulations(p.33)
- • High import duties on wines benefit company but could be reduced(p.34)
- • Adverse climatic conditions may impact quality of wine grapes(p.34)
- • Supply disruptions in raw materials(p.34)
- • State regulation prevents retail price adjustments(p.35)
- • Changing consumer tastes and preferences may reduce wine demand(p.35)
- • Restricted advertising of alcoholic beverages in India(p.39)
- • COVID-19 pandemic adversely affects business operations(p.39)
- • Macroeconomic and political instability in India affecting business(p.60)
- • Natural calamities, epidemics and pandemics disrupting operations(p.61)
- • Changes in laws and regulations affecting wine industry(p.62)
- • Regulatory compliance requirements including environmental and food safety standards(p.49)
- • Inflation and inability to pass costs to customers in price-controlled states(p.64)
- • Foreign exchange risks from imports and exports(p.58)
- • Supply disruption risks from electricity and water availability(p.53)
- • Labor union activity and work stoppages(p.56)
- • Competition from other wine producers(p.47)
- • Downgrade of India's sovereign credit rating affecting borrowing costs(p.63)
- • Global financial instability impacting Indian markets(p.64)
- • High regulatory fragmentation across states limiting standardization(p.195)
- • Consumer preference for spirits over wine remains dominant(p.175)
- • Limited consumer understanding and education about wine category(p.176)
- • Pricing positioning limiting market penetration in price-sensitive segments(p.176)
- • Supply chain constraints with limited skilled winemakers available(p.195)
- • Climate-related risks and tropical growing conditions impact(p.195)
- • High import duties protecting but also limiting imported wine competition(p.195)
- • Monsoon and weather dependency affecting grape quality and yields(p.195)
- • Substantial regulatory disputes across multiple statutes with ₹1,270.89 million in disputed levies under appeal(p.325)
- • Foreign exchange risk with EUR exposure creating ₹14.36 million net liability and exposure to FX volatility(p.320)
- • Trade receivable concentration risk with 55.88% from government corporations susceptible to policy changes(p.321)
- • Interest rate risk with floating rate borrowings of ₹1,287.50 million exposed to rate fluctuations(p.300)
- • Significant excise and regulatory compliance requirements with multiple ongoing disputes and potential liabilities(p.309)
- • Regulatory prohibition in multiple states(p.345)
- • Variable excise duty structure across states(p.345)
- • Price control regulations in key markets(p.346)
- • Severe advertising restrictions(p.346)
- • High import duties limiting competition(p.346)
- • Potential duty reduction from trade agreements(p.346)
- • Climate and raw material supply risks(p.347)
- • Ongoing COVID-19 uncertainty(p.348)
- • Regulatory approval dependency for operations(p.386)
- • Regulatory approval dependency for expansion(p.386)
- • Complex multi-state regulatory compliance(p.384)
- • Extensive regulatory environment across multiple licenses(p.384)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Rajeev Samant | Promoter | 28.01% | — |
| Rajeev Samant | Promoter | 28.01% | — |
| Rajeev Samant | Promoter | 28.01% | — |
| Mia Samant | Promoter Group | 1.33% | — |
| RASA Holdings | Promoter Group | Negligible | — |
| Rajeev Samant | Promoter | 28.01% | — |
| Rajeev Samant | Promoter | 23.96% | 25.56% |
| Verlinvest Asia Pte Ltd. | Promoter Group | 23.40% | 22.45% |
| Verlinvest S.A | Promoter Group | 9.54% | 9.15% |
| Cofintra S.A. | Promoter Group | 9.54% | 9.15% |
| Verlinvest France S.A | Promoter Group | 8.73% | 8.37% |
| Ruta Samant | Promoter | 3.23% | 5.70% |
| Rajeev Samant | Promoter | — | — |
| Rajeev Samant | Promoter Selling Shareholder | — | — |
Leadership
Rajeev Samant · Promoter/Managing Director/CEO
Chetan Rameshchandra Desai · Chairman
Bittu Varghese · CFO
Chaitanya Rathi · COO
Ruchi Sathe · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Sula Vineyards IPO FAQs
What is the lot size of Sula Vineyards IPO?
The minimum lot size of Sula Vineyards IPO is 42 shares. One lot costs ₹14,994 at the cut-off price.
When does Sula Vineyards IPO open and close?
Sula Vineyards IPO opened for subscription on 12 Dec 2022 and closed on 14 Dec 2022.
What is the listing date of Sula Vineyards IPO?
Sula Vineyards IPO listed on 22 Dec 2022.