India's largest wine producer and seller, Sula Vineyards will launch its initial public offering (IPO) on December 12. The IPO entirely offers for sale (OFS) where selling shareholders will offload around 2.69 crore equity shares for the public.
Subscription in the IPO will be available till December 14. Ahead of the IPO, anchor investors will be allowed to bid in Sula Vineyards on December 9.
In a press meeting on Wednesday, Sula Vineyards announced its plan to raise 9.60 billion dollars from the public offer. While they revealed that the shares offered in the IPO will be priced at Rs. 340 per share and Rs. 357 per share.
As per the red herring prospectus, the offer for sale will be 26,900,530 equity shares. Since the IPO is purely OFS, the proceeds will not go to the company. Selling shareholders are -promoter Rajeev Samant, investors such as Cofintra S.A, Haystack Investments, Saama Capital III, SWIP Holdings, Verlinvest S.A, and Verlinvest France S.A.
Other selling shareholders are -Dinesh G. Vazirani, J.A. Moos, Karishma Singh, Major A.V. Phatak, Narain Girdhar Chanrai, Ruta M. Samant, and Sanjay Naraindas Kirpalani.
The face value of equity shares would be Rs. 2 per share in the IPO.
Of the total, 50 percent of the IPO size will be allotted to qualified institutional buyers (QIB) for bidding, while 15 percent will be reserved for non-institutional investors (NIIs) and the remaining 35 percent will be kept for retail individual investors.
Kotak Mahindra Capital Company, CLSA India, and IIFL Securities are the book-running lead managers for the IPO. KFin Technologies is the registrar of the offer.
Sula Vineyards have been a consistent market leader in the Indian wine industry. Sula has made remarkable progress in over a decade. In the 100 percent grapes wine category, the company's market share on the basis of revenue, increased from 33 percent in FY09 to 52 percent in FY20 and further to 52.6 in FY21.
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