Additionally, Sula Vineyards is the second alcohol and spirits company to file for IPO papers in recent years.
The Securities and Exchange Board of India, or SEBI, has received draft papers from Sula Vineyards, India’s largest winemaker, to raise capital through an IPO.
Selling shareholders will receive all the proceeds from the Sula IPO, which will be an entirely offer for sale issue.
Neither the date nor price of the Nashik-based company’s IPO have been confirmed, but the shares have a face value of Rs 2.
In India, this is the first time a pure play wine manufacturer has filed for an initial public offering.
Additionally, this is the second IPO of a company in the alcohol and spirits sector in recent times. The SEC filed the Draft Red Herring Prospectus for Officers Choice whiskey maker Allied Blenders & Distillers in June.
Verlinvest, a Belgian family office focused on consumer goods, is a key shareholder in the wine company based in Nashik, Maharashtra.
As part of the Sula IPO, Verlinvest and Verlinvest France will offload up to 7,191,835 and 4,990,920 equity shares.
Rajeev Samant, the company’s managing director, and CEO will offer up to 1,171,504 shares.
IPO documents for Sula Vineyards, including price, date, and other details, are expected to be filed soon.
Moneycontrol reported earlier that Sebi had received the DRHP. Verlinvest is among the major selling shareholders as part of the IPO. The Sula Vineyards IPO will provide Contra with the opportunity to sell as many as 7,191,835 shares of Sula Vineyards.
A price band and minimum bid lot will be determined in consultation with the book running lead
Newspaper advertisements will be placed two days before the launch date of the offer.
By listing equity shares on exchanges, the company aims to achieve two goals. The first is to facilitate the sale of stock by the selling shareholders; the second is to fulfill the offer for the sale of stock.
As the book-running lead managers, Kotak Mahindra Capital, CLSA India, and IIFL Securities are handling the Sula IPO, while KFinTech is serving as the registrar.
India’s west and south-western states are the major producers of wine grapes, which are the company’s main raw materials.
The company’s wine manufacturing units are also based in the west and southwest of India, with the company’s flagship facility located in Nashik, Maharashtra, as well as in Dindori and Bengaluru in Maharashtra, and Basavakalyan and Bengaluru in Karnataka.
In the domestic wine industry, Sula has an impressive market share thanks to its extensive wine portfolio.