The shares of Sula Vineyards Limited, India’s largest wine producer and seller, made a flat debut on the Indian stock exchanges on Thursday after it listed at Rs 361 per share against its issue price of Rs 357 which represents a premium of 1 percent.
Soon after its listing, the share dipped by more than 8 percent and ended the session at Rs 331 per share. On Friday, the shares dipped further and were trading 6 percent lower at Rs 312 levels till the afternoon. Weak market sentiments coupled with a tepid subscription response to the IPO could be the reason for its poor performance.
Despite a weak listing, the company attracted high Foreign Investments. As per the NSE Bulk deal data, Goldman Sachs Funds Goldman Sachs India Equity Portfolio bought 6,95,864 shares at an average price of Rs 351.48 per share making the average investment value of Rs 24.45 Crore.
Likewise, Jupiter India Fund also bought 6,32,155 shares of the wine company at an average price of Rs 361 per share which makes up a total investment value of Rs 22.82 crore.
Sula Vineyards Limited is a market leader in the Indian wine industry in terms of sales volume and value and holds around 52.6% share as of Fiscal 2021. The company owns the flagship brand “Sula,” along with other popular brands that include “RASA,” “Dindori”, “The source,” “Satori”, “Madera” and “Dia”.
The other business verticals of the company include Wine Tourism. It includes ownership and operation of wine tourism venues, including vineyard resorts and tasting rooms. The small-cap stock has a market capitalization of Rs 2,618 Crore.
Written by Anoushka Roy
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