Sula Vineyards makes a flat bourse debut, listing at Rs 361
The public offering was a complete offer for sale, which implies that no proceeds were received by the corporation, and the money was sent to the selling shareholders.
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Sula Vineyards, India's largest wine producer, made a flat stock market debut on December 22, listing at a 1% gain to its issue price of Rs 357 per share.
On the NSE, it began trading at Rs 361, up 1.12 percent. It began trading for Rs 358 on the BSE.
Sula Vineyards' first public offering was subscribed to 2.33 times from December 12-14, 2022, with every category receiving full subscription, but it was lower than analysts expected.
The public offering was a complete offer-for-sale, which implies that no proceeds were received by the firm, and the money was distributed to the selling stockholders.
"Reduced promoter holdings are grounds for concern. Investors with excess funds may consider investing for long-term gain "Proficient Equities Founder and Director Manoj Dalmia remarked.
Sula Vineyards had outstanding borrowings of Rs 231.5 crore and cash and cash equivalents of Rs 13 crore at the end of the September quarter.
Sula's financial performance has been erratic during the last five years. It declared a net profit of Rs 12.3 crore for the fiscal year ending March 31, 2018. The net profit the following year was Rs 7.2 crore, followed by a loss of Rs 16 crore. Net profit for the fiscal year ended March 2021, which was the Covid-affected year, was Rs 3 crore. The next year, just before the IPO, net profit increased to Rs 52 crore.
"Based on its financial track record, the issue is completely priced-in and discounts all near-term growth," says Prashanth Tapse, Senior Vice President of Research at Mehta Equities.
In India, the total consumption of alcoholic beverages is 987 million cases. Thirty percent of this is beer, 69.3 percent is spirits, and only 0.7 percent is wine.
