India’s biggest wine seller, Sula Vineyards, files for IPO

  • Sula Vineyards filed a DRHP with SEBI to raise funds through a public offering.
  • The winemaker is well known for its wine brands like Sula, RASA, Dindori, The Source, Satori, Madera and Dia.
  • The company recorded an annual growth of 13.7% between FY11 and FY21.

Nasik-based Sula Vineyards, the country’s largest wine producer, today filed a draft prospectus of red herring or DRHP for a public offering, with the market regulator, SEBI.

Although the amount to be raised has yet to be revealed, the company is well known for its wine brands such as Sula, RASA, Dindori, The Source, Satori, Madera and Dia. It produces 56 different wine labels across 13 distinct brands.

It has six production sites in Maharashtra and Karnataka.

The company recorded annual growth of 13.7% between FY11 and FY21, according to DRHP. Based on total operations revenue, it gained market share from 33% in FY09 in the grape wine category to 52.6% in FY21.

Its activity can be classified into the production of wine, the importation and distribution of wines and spirits and the sale of services resulting from the ownership and operation of wine tourism sites including wine residences and tasting rooms.

The issue with a par value of ₹2 per share is a complete offer to sell (SFO) totaling 25,546,186 shares.

Sula serves nearly 8,000 hotels, restaurants and caterers, and partners with distributors in Maharashtra, Haryana, Delhi, Goa and Punjab with nearly 13,000 retail touchpoints across the country in 2021 .

Sula’s Shiraz Cabernet is India’s top-selling wine by value in FY21, grossing ₹91.8 crore in FY22.

The wine market in India will remain concentrated with high entry barriers due to the nature of the product in addition to the trade barriers prevalent in the alcoholic beverages market. The demand for wines in urban and semi-urban areas of India is on the rise, according to DRHP.

Kotak Mahindra Capital, CLSA and IIFL Securities are the lead book managers and KFin Technologies is the offering registrar. The shares are proposed to be listed on the BSE and the NSE.

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