Sula Vineyards files DRHP with Sebi for IPO - IPO News (2023)

FAQs

Is it good to invest in Sula IPO? ›

Its financial performance is also improving. This issue of Sula Vineyard is coming at a P/E valuation of 54.67 which is lower than its peers. The issue, however, is a complete offer for sale and low promoter holding is also a concern thus we recommend Subscribe rating to this IPO only for high-risk Investors."

Sula Vineyards Limited IPO: Financials

The EBITDAE has more than doubled in this period. The reason for the jump in EBITDAE is an increase in EBITDAE margins - it has increased from 9.68% in FY20 to 25.57% in FY22. The net profit for the same period was Rs (15.94) crore, Rs 3.01 crore, and Rs 52.14 crore, respectively.

CHENNAI: Sula Vineyards Ltd's initial public offering was oversubscribed on Wednesday with bids worth 15.65 billion rupees ($189.63 million), although some analysts had expected still more demand for India's largest wine producer.

Indian winemaker Sula's IPO oversubscribed with bids worth $190 mln | Reuters.

Sula Vineyards SULA share price forecast & targets for Intra Day are 406.03, 404.08, 399.57 on the downside, and 414.43, 412.48, 416.37 on the upside.

Q: What will be the share price target of Sula Vineyards in 2025? A: The maximum share price target for Sula Vineyards will be Rs 435.40 to Rs 455.20 by 2025.

“Sula being the largest producer and seller of wine is well placed to capture the future growth opportunities in the Indian wine market. Long term investors are recommended to remain invested in the counter,” Yadav added.

After an IPO, the price of the stock will fluctuate as investors buy and sell the shares. IPOs are typically highly volatile for the first several months of their existence. To company management, employees, and investors, the aftermarket performance of the stock is vital.

What is GREY value for IPO? ›

The grey market premium aka IPO GMP is information that is calculated based on the demand of a company that is coming up with an IPO. The grey market starts unofficially in the unregulated market after the IPO date and price band announcements.

So, when it comes to allocation in case of oversubscription, the total number of shares available for retail investors is divided by the minimum lot size. This helps in determining the number of retail investors who will be allocated shares.

If the IPO is oversubscribed, a maximum of 1 lot must be alloted to the applicant using the allotment system. If the IPO is under-subscribed, the applicant may receive all the lots that they have applied for.

The price target is based on assumptions about a security's future supply and demand, technical levels, and fundamentals. Different analysts and financial institutions use various valuation methods and take into account different economic conditions when deciding on a price target.

The minimum order quantity and lot size of Sula Vineyards IPO is 42 shares.

What is Sula Vineyards price to earnings ratio? ›

Price-To-Earnings vs Peers: SULA is expensive based on its Price-To-Earnings Ratio (39.8x) compared to the peer average (29.2x).

For the year ending March 2023 Sula Vineyards has declared an equity dividend of 262.50% amounting to Rs 5.25 per share. At the current share price of Rs 408.60 this results in a dividend yield of 1.28%. Sula Vineyards had last declared a dividend of 262.50% for the year ending March 2023.

According to stock market experts, the stock has opened flat and slipped into discount on two major reasons — weak Dalal Street sentiments and 100 per cent OFS.

Sula Vineyard's stock tumbled to as low as Rs 335.45 apiece, down over 4 per cent on the BSE from Friday's closing as the anchor investors' mandatory 90-day lock-in period ends today. Sula Vineyards launched the initial public offer between December 12-14, 2022.

What will be the share price of yes in 2030? Yes bank share price forecast in year 2030 may be Rs.105 to 120.

Financial Health criteria checks 5/6

Sula Vineyards has a total shareholder equity of ₹5.3B and total debt of ₹1.9B, which brings its debt-to-equity ratio to 36%. Its total assets and total liabilities are ₹8.8B and ₹3.5B respectively. Sula Vineyards's EBIT is ₹1.3B making its interest coverage ratio 6.3.

Sula is a market leader in wines in India, with a market share greater than 52% in the 100% grape wine category. "Sula Vineyards is well placed to leverage the global consumer shift towards the low-alcohol beverage segment - beer and wine.

For this reason, wine is typically seen as an alternative asset and a good way to diversify where your money is coming from. While wine is a relatively low-risk, slow-return investment, there are reasons for its growing popularity.

Do stocks usually drop after IPO? ›

Even though the average gains for first-day IPOs look exciting, it's important to note that nearly a third of all IPOs decrease in value on day one of trading. This means the stock trades lower than its offer price before the market closes.

According to market researchers, selling your shares on the listing day is way more effective than exiting the market later on. The market researchers have found that almost 50% of IPOs listing day prices are higher than the price during the year-end.

Buying and selling a stock shortly after its IPO can be highly risky because the price of a stock once it goes public can be vastly different from its IPO price. Also, IPO stocks may not perform as expected in the short term. That said, investors may want to have potential exit strategies for their IPO stocks.

A good starting point when evaluating the best IPO to buy is the red herring prospectus. All companies undergoing an IPO issue this. It contains most of the information you need to evaluate the company. The company's website, annual report, and media reports are other sources you can refer.

Try to select an IPO that has a strong underwriter—a major investment firm. Always read the prospectus of the new company. Be skeptical if a broker is pitching an IPO too hard. Waiting until corporate insiders are free to sell their company shares, the end of the "lock-up period," is not a bad strategy.

One of the most common valuation method used is Price-to-Earning multiples. This compares a company's market cap to its annual income. To determine the value of the company, its estimated equity value is divided by its recent net income to find out the price-to-earnings multiple.

Sula Vineyards IPO Subscription Status Live

The public issue subscribed 1.65 times in the retail category, 4.13 times in QIB, and 1.51 times in the NII category by Dec 14, 2022. Disclaimer: *The total amount is calculated based on the final issue price or the price in the upper price range.

One thing to note here is that a grey market is an unofficial market, not an illegal market. Similarly, grey market IPO is a market where individuals buy and sell IPO shares or applications before they are listed on the stock exchanges. As this is an unofficial market there are no rules and regulations.

Sula Vineyards IPO Price Band

Sula Vineyards has fixed price band of Rs 340-357 a share for its Rs 960.35 crore initial public offering (IPO). The IPO is an offer for sale (OFS) of shares aggregating up to 26,900,532 equity shares by the promoter, investors and other shareholders.

In 2021, only 28 percent of companies were profitable after their IPO.

What is the max IPO amount? ›

The maximum amount of investment is Rs. 2 lakh. A minimum of 35% of the IPO is reserved for the RII category.

India's largest IPO, for insurer LIC, oversubscribed 2.95 times.

One should apply via multiple IPOs accounts for highly subscribed IPOs. Applying through multiple accounts can definitely increase the chances of IPO allotment.

SEBI stipulates that if there is oversubscription, then the minimum lot size must be allotted to as many shareholders as possible. So, if you have applied for 1 lot of the IPO and the IPO is oversubscribed 2 times, then you have a very good chance of getting an allotment of shares in that IPO.

In the case of your bid being lower than the cut-off price set by the company, you will automatically become ineligible for allotment. However, if you bid higher than the cut-off price in an IPO, the excess amount will be refunded to you after allotment.

Stock price target for Sula Vineyards Limited SULA are 402.4 on downside and 425.1 on upside.

Sula Vineyards IPO review: Given factors such as a leading market share position , healthy rise in profits, solid brands and a strong distribution network, various external analysts have given a 'positive' rating on the company's long-term prospects.

The Mumbai-based company posted a consolidated profit of 392.8 million rupees ($4.76 million) in the quarter ended Dec.

The advantage for a company to raise funds via an IPO over other traditional financing channels like loans is the visibility in public and the opportunity to improve market capitalization. The layman gets an opportunity to buy shares and holds a small stake in company ownership.

For the full year, Sula Vineyards has posted a net profit of Rs 84 crore, up 61% year-on-year, while revenues for FY23 jumped 22% to Rs 553 crore. Own brands revenue contribution jumped to 86.3% in the fourth quarter as against 80.7% in the same period last year, with an underlying volume growth of 14.4%.

Which IPO is most profitable? ›

The Sula Vineyards IPO is proposed to open on Dec 12, 2022. The IPO application ends on Dec 14, 2022.

You shouldn't invest in an IPO just because the company is garnering positive attention. Extreme valuations may imply that the risk and reward of the investment is not favorable at the current price levels. Investors should keep in mind a company issuing an IPO lacks a proven track record of operating publicly.

The stock listed at ₹ 358, marginally higher by 0.27 per cent from the issue price on the BSE. It later hit a high of ₹ 363.40 and low of ₹ 339. At the NSE, it made its debut at ₹ 361, climbing 1.12 per cent.

Financial Health criteria checks 4/6

Sula Vineyards has a total shareholder equity of ₹4.0B and total debt of ₹2.3B, which brings its debt-to-equity ratio to 57.9%. Its total assets and total liabilities are ₹7.6B and ₹3.6B respectively. Sula Vineyards's EBIT is ₹1.3B making its interest coverage ratio 7.6.

With a winery, affluent investors can produce their own wines as well as team with distributors to supply their wine to restaurants and retailers. Owning a winery can allow investors to maximize their wealth by dipping into the small-brand wine market while also enjoying the fruits of their labour.