The initial public offering (IPO) of India’s largest wine producer Sula Vineyards received a lukewarm response on the first day of bidding on Monday.
The company, backed by investors such as Verlinvest Group, Cofintra S.A, Haystack Investments, Saama Capital III and SWIP Holdings, is looking to raise up to ₹960 crore from the IPO.
About 28% of the offered size was subscribed by the end of day, according to BSE data. Investors bid for 5.23 million shares on the first day against the 18.83 million shares on offer. The retail portion was subscribed the most—about 48%—garnering bids for 4.5 million shares, while the non-institutional portion was subscribed 18% or 0.73 million shares. Qualified institutional buyers haven’t submitted any bid so far. Sula has offered more than 26.9 million shares in the OFS at a price band of ₹340-₹357 apiece. The issue will close on Wednesday.
Kotak Mahindra Capital Company, CLSA India and IIFL Securities are the book running lead managers. Sula raised about ₹288 crore from anchor investors, ahead of the IPO, on Friday. The company produces 56 labels of wines across 13 brands at its four owned and two leased production facilities in Maharashtra and Karnataka.
Sula had reported a revenue from operations of ₹453.92 crore in FY22 and a net profit of ₹52.14 crore during the period.