Sula Vineyards' IPO subscription open: Everything you need to know
What's the story
Sula Vineyards Ltd, India's largest wine producer and seller, launched its initial public offering (IPO) at 10 am today. The bidding will remain open for the general public till December 14, 2022.
The company plans to raise Rs. 960.5 crore through the IPO, which is entirely OFS (offer for sale) in nature.
The price band for the IPO is Rs. 340-357.
IPO
The IPO is completely in the form of OFS
Sula Vineyards' IPO is in the form of OFS, wherein 26,900,532 equity shares of promoters, investors, and other shareholders are up for grabs.
Out of the total issue, 50% is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors, and 35% for retail investors.
Application for the IPO is in lots, with one lot containing 42 shares.
OFS
Promoter is selling over 900,000 shares
The OFS includes up to 937,207 equity shares by promoter Rajeev Samant.
As far as investors are concerned, Cofintra SA's 7,191,835 shares, Haystack Investment's 200,000 shares, Verlinvest SA's 7,191,835 shares, Verlinvest SA France's 6,579,565 shares, Saama Capital III's 687,389 shares, and SWIP Holdings' 121,076 shares are on offer.
Other selling shareholders are collectively selling up to 3,991,627 shares, according to the Red Herring Prospect.
Bidding
Minimum amount required for bidding is Rs. 14,280
Interested bidders have to apply for the IPO in lots. A bidder has to apply for at least one lot, while the maximum limit for retail investors is 13 lots.
The price band for the IPO is Rs. 340-357 per equity share. At the lower price band, investors will have to shell out Rs. 14,280 for a single lot.
Allotment & listing
Shares will be allotted on December 19
The shares of Sula Vineyards will be allotted tentatively on December 19, 2022.
The IPO will be listed on both the BSE as well as NSE. The tentative date for listing is December 22, 2022.
The company will not receive any proceeds from the issue of shares. All proceeds from the offer will go to the selling shareholders.
Subscribe or not
Should you subscribe to the IPO or not?
Most market experts are cautiously optimistic about the IPO. Considering the low penetration of wine in India and Sula's position as the country's top-most wine brand, the growth potential is certainly high.
India is considered one of the most exciting wine markets due to rising per capita income and expanding target population.
However, the 100% OFS nature adds to the risk of the IPO.
Information
80.7 lakh shares were allotted to anchor investors
As of 2:25 pm, the Sula Vineyards IPO had been subscribed 0.16 times on day one. Non-institutional investors subscribed 0.06 times, while retail investors subscribed 0.26 times. Ahead of the IPO, Sula allotted 80.7 lakh shares to anchor investors at Rs. 357 apiece.