Sula Vineyards, India’s largest wine-maker, has filed draft papers with the market regulator Securities and Exchange Board of India, or SEBI, to raise capital through an initial public offering. The Sula IPO will be an entirely offer for sale issue, with up to 25,546,186 put up for sale, whereby selling shareholders will receive all the proceeds. The Nashik-based company has not finalised the date or price of the IPO yet but has said that the shares are worth a face value of Rs 2 each.
This is the first time that a pure play wine manufacturer in India has filed for an IPO. The Sula Vineyards IPO is also the second such issue in recent times whereby an alcohol and spirits segment company has filed for its papers. In June, Officers Choice whiskey maker Allied Blenders & Distillers filed is Draft Red Herring Prospectus, or DHRP, with Sebi.
The wine company, which is based in Maharashtra’s Nashik has the backing of key shareholder consumer focused Belgian family office Verlinvest. Verlinvest and Verlinvest France will offload up to 7,191,835 and 4,990,920 equity shares of the company through the Sula IPO. The wine company’s managing director and CEO Rajeev Samant on the other hand will offer up to 1,171,504 shares as part of the public offering.
“The e-filing of the DRHP with Sebi has been done. The IPO consists consists solely of an OFS component, as part of which Verlinvest and the promoter group are amongst the major selling shareholders,” a source earlier told Moneycontrol. Another key promoter, Cofintra will offload up to 7,191,835 equity shares through the Sula Vineyards IPO.
The price band and the minimum bid lot shall be decided by the company, acting through the IPO committee, in consultation with the book running lead
managers and will be advertised on newspapers at least two days prior to the launch date of the offer.
The objects of the offer are to — carry out the offer for sale of up to 25,546,186 equity shares by the selling shareholders; and achieve the benefits of listing the equity shares on the stock exchanges, the company said in its DHRP.
Kotak Mahindra Capital, CLSA India and IIFL Securities are the book running lead managers to the Sula IPO. On the other hand, KFinTech is the registrar of the issue.
The farming of wine grapes which is the major raw material for the company’s operations, is concentrated in the west and south-western states of India. Its wine processing units are also located in the west and southwest of India, with our flagship facility located in Nashik, Maharashtra, and our wine processing units located in Nashik and Dindori in Maharashtra, and Bengaluru and Basavakalyan in Karnataka. Sula has an impressive market share in the domestic wine industry, which is a result of its vast wine portfolio.