Sula Vineyards IPO Analysis @ Chanakyanipothi.com
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Sula Vineyards IPO Guidance: The company commands huge market share in Wine sales and has shown strong growth rate in the topline. The upper price band is reasonably price compared to the peer stocks and also the growth rate of this company. The IPO is expected to bring in strong oversubscription. Apply with the objective of good listing gains and returns as medium term investment.

Sula Vineyards IPO Grey Market updates

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Sula Vineyards IPO Subscription Status
# On 14 December 2022 @ 5.00 pm (Day 2)
QIB        :     5380106   Shares,  4.13T
Big NII   :     2690053   Shares,  1.69T
SmallNII:      1345027  Shares,  1.15T
RII         :      9415186   Shares,  1.65T
Total     :      18830372 Shares,  2.33T

Sula Vineyards IPO Company Details
Sula Vineyards is India’s largest wine producer and seller as of March 31, 2021. It has been a
consistent market leader in the Indian wine industry in terms of sales volume and value (on the basis of the total revenue from operations) since Fiscal 2009 crossing 50% market share by value in the domestic 100% grapes wine market in Fiscal 2012. It has consistently gained market share from 33% in Fiscal 2009 in 100% grapes wine category to 52% in value in Fiscal 2020 and further increased to 52.6% in Fiscal 2021. Furthermore, it is the market leader across all four price segments, being ‘Elite’, ‘Premium’, ‘Economy’ and ‘Popular’, with a higher share of approximately 60% by value in the ‘Elite’ and ‘Premium’ categories in Fiscal 2021, as compared to its overall market share of 52.6% in the Indian wine industry.
Furthermore, it is also recognized as the market leader across wine variants, including red, white and sparkling wines. Sula Shiraz Cabernet is India’s largest selling wine by value in Fiscal 2021
. Its gross billings of Sula Shiraz Cabernet in Fiscal 2022 amounted to Rs 918.26 million.
Its business can be broadly classified under two categories (i) the production of wine, the import of wines and spirits, and the distribution of wines and spirits (the “Wine Business”); and (ii) the sale of services from ownership and operation of wine tourism venues, including vineyard resorts and tasting rooms (the “Wine Tourism Business”).

Sula Vineyards distributes wines under a bouquet of popular brands. In addition to the flagship brand “Sula,” popular brands include “RASA,” “Dindori”, “The source,” “Satori”, “Madera” & “Dia” with its flagship brand “Sula” being the “category creator” of wine in India. Currently, it produces 56 different labels of wine at four owned and two leased production facilities located in the Indian states of Maharashtra and Karnataka.
India is one of the fastest growing alcoholic beverage markets in the world, growing from a small base of 1.3 litres per capita of recorded consumption in 2005 to 2.7 litres in 2010. However, the per
capita consumption of wine in India is less than 100 ml, with the contribution of wine to overall alcohol consumption being less than 1%, compared to the world average of close to 13%. In addition to the growth in per capita alcohol consumption, positive demographic factors, including the addition of more than ten million people each year to the population of eligible alcohol consumers, makes India one of the most attractive markets for alcoholic beverages.

The Company serviced close to 8,000 hotels, restaurants and caterers, which makes it the leader in terms of footprint among wine players in India and experienced a significant rise in its Off-trade sales in the last 3 years with our Off-trade sales contributing 72.25% of its secondary sales during Fiscal 2022, compared to 61.33% in Fiscal 2020. It has tie-ups with distributors in Maharashtra, Haryana, Delhi, Goa and Punjab. To that end, it has managed to build the largest distribution network among wine companies in India, with close to 13,000 retail touchpoints across the country in 2021. Its products are available over various ecommerce platforms
For more information, click www.sulavineyards.com

The Promoters of Sula Vineyards IPO
Rajeev Samant

Sula Vineyards IPO Main Objects
The Offer comprises only offer for share.

Sula Vineyards IPO Details
IPO opens on 12 December 2022
IPO closes on 14 December ,2022
Issue Type: Book Built Issue IPO
Issue: up to 26900530 Shares /Rs 960.35 Crore
* Fresh Issue of –
* Offer for Sale Up to 26900530 Sh/ Rs. 960.35Cr

Face Value per share: Rs. 2
Sula Vineyards IPO Price Band Per Equity Share: Rs. 340-357
Sula Vineyards IPO Retail Lot Size 42 Shares
Sula Vineyards IPO Listing will at BSE, NSE

Shares offered to
QIB (50 %) 13450265 Shares = Rs 480.17 Cr
NII  (15 %) 4035080   Shares = Rs 144.05 Cr
RII   (35 %) 9415185   Shares = Rs 336.12 Cr
Lot size: 42 Shares = 224171 Forms
How much Shares to Apply?
Min Retail Application           42 Shares Rs. 14994
Max Retail Application          546 Sh      Rs. 194922
Small HNI (Min) Application 588 Sh      Rs. 209916
Small HNI (Max) Application 2772 Sh    Rs. 989604
Big HNI Application              2814 Sh    Rs. 1004598

Sula Vineyards IPO Tentative timetable
Opens on 12 December 2022
Closes on 14 December 2022
Allotment on 19 December 2022
Unblocking of ASBA 20 December 2022
Credit of shares 21 December 2022
Sula Vineyards Listing on 22 December 2022

Sula Vineyards IPO Financial & Analytical Ratios
Earnings per Share 2019-20 Rs (2.01)
Earnings per Share 2020-21, Rs 0.38
Earnings per Share 2021-22 Rs 6.53
Return on Net Worth: 19-20 (4.60) %
Return on Net Worth: 20-21: 0.85%
Return on Net Worth: 20-21: 11.45%
Equity Shares prior to & after the IPO: 81,600,875 Shares
Book Value of the Share as on 31.3.2022 Rs 55.34
Ratio Analysis
Upper Price Band/last EPS: 54.67
Upper offer price/Book Value Ratio: 6.45

Sula Vineyards IPO Peer Comparison:
United Spirits @ PE Ratio of 69.07
Radico Khaitan @ PE Ratio of 45.94
United Breweries @ PE Ratio of 116.82

Sula Vineyards IPO Lead Managers 
Kotak Mahindra Capital, CLSA India, IIFL financial Services,
Registrar to Sula Vineyards IPO
Kfin Technologies India Pvt ltd.

Registered Office of Sula Vineyards
901, Hubtown Solaris, N.S. Phadke Marg, Andheri (East), Mumbai 400 069 Maharashtra, India
Company Secretary & Compliance Officer: Ruchi Sathe

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