Sula Vineyards shares fall 8% amid reports Verlinvest sold entire stake, company issues clarification
Sula Vineyards share price today: Sula Vineyards shares fell 8.40% to an intraday low of Rs 565.60 on BSE. Market cap of the firm plunged to Rs 4,789.68 crore.
- Feb 19, 2024,
- Updated Feb 19, 2024 4:41 PM IST
Shares of Sula Vineyards Ltd slipped over 8% today amid reports of a block deal wherein 12% equity changed hands. Shareholder Verlinvest sold its entire 8.34% stake in the Nashik-based wine maker, according to reports. However, Sula Vineyards issued a statement to bourses about a report on stake sale.
Sula Vineyards said, "We were not aware of the decision of Verlinvest Asia to sell its entire 8.34% stake in our company. They have not discussed this issue with the company which we understand is purely their investment decision."
The clarification was issued in response to a report by The Economic Times.
Sula Vineyards stock fell 8.40% to an intraday low of Rs 565.60 on BSE. Market cap of the firm plunged to Rs 4,789.68 crore. A total of 19.83 lakh shares of the firm changed hands amounting to a turnover of Rs 114.67 crore on BSE. Later, the stock ended 7.81% lower at Rs 569.20 crore on BSE.
ALSO SEE: Hot stocks on February 19: Sula Vineyards, RVNL, Paisalo Digital, IRFC, Data Patterns and more
"The company did not make any disclosure to the Exchange under Regulation 30 of the Listing regulations. Further, in our view there would be no material impact of this article on the company. We would like to reiterate that the company has always and will continue to adhere to the compliances required under the Listing Regulations and other applicable laws," added Sula Vineyards in its clarification.
In terms of technicals, the relative strength index (RSI) of the stock stands at 51.9, signaling it's trading neither in the overbought nor in the oversold zone. The stock is trading higher than the 100 day, 150 day, 200 day but lower than the 5 day, 10 day, 20 day and 50 day moving averages.
The wine maker said its consolidated net profit rose 9% to Rs 42.98 crore ($5.2 million) from Rs 39.28 crore a year ago.
Total revenue rose 4% to Rs 218 crore, the company said. Margins on earnings before interest, tax, depreciation and amortization (EBITDA) expanded to 33.7% from 31% a year ago.
Sula Vineyards also declared an interim divided of Rs 4 per share for the financial year 2024.
Sula Vineyards Ltd is a producer and seller of wine. It distributes wines under a bouquet of popular brands including RASA, Dindori, The Source, Satori, Madera, and Dia. The company's business is broadly classified under two categories namely the production of wine, the import of wines and spirits, and the distribution of wines and spirits and the sale of services from ownership and operation of wine tourism venues, including vineyard resorts and tasting rooms.
Shares of Sula Vineyards Ltd slipped over 8% today amid reports of a block deal wherein 12% equity changed hands. Shareholder Verlinvest sold its entire 8.34% stake in the Nashik-based wine maker, according to reports. However, Sula Vineyards issued a statement to bourses about a report on stake sale.
Sula Vineyards said, "We were not aware of the decision of Verlinvest Asia to sell its entire 8.34% stake in our company. They have not discussed this issue with the company which we understand is purely their investment decision."
The clarification was issued in response to a report by The Economic Times.
Sula Vineyards stock fell 8.40% to an intraday low of Rs 565.60 on BSE. Market cap of the firm plunged to Rs 4,789.68 crore. A total of 19.83 lakh shares of the firm changed hands amounting to a turnover of Rs 114.67 crore on BSE. Later, the stock ended 7.81% lower at Rs 569.20 crore on BSE.
ALSO SEE: Hot stocks on February 19: Sula Vineyards, RVNL, Paisalo Digital, IRFC, Data Patterns and more
"The company did not make any disclosure to the Exchange under Regulation 30 of the Listing regulations. Further, in our view there would be no material impact of this article on the company. We would like to reiterate that the company has always and will continue to adhere to the compliances required under the Listing Regulations and other applicable laws," added Sula Vineyards in its clarification.
In terms of technicals, the relative strength index (RSI) of the stock stands at 51.9, signaling it's trading neither in the overbought nor in the oversold zone. The stock is trading higher than the 100 day, 150 day, 200 day but lower than the 5 day, 10 day, 20 day and 50 day moving averages.
The wine maker said its consolidated net profit rose 9% to Rs 42.98 crore ($5.2 million) from Rs 39.28 crore a year ago.
Total revenue rose 4% to Rs 218 crore, the company said. Margins on earnings before interest, tax, depreciation and amortization (EBITDA) expanded to 33.7% from 31% a year ago.
Sula Vineyards also declared an interim divided of Rs 4 per share for the financial year 2024.
Sula Vineyards Ltd is a producer and seller of wine. It distributes wines under a bouquet of popular brands including RASA, Dindori, The Source, Satori, Madera, and Dia. The company's business is broadly classified under two categories namely the production of wine, the import of wines and spirits, and the distribution of wines and spirits and the sale of services from ownership and operation of wine tourism venues, including vineyard resorts and tasting rooms.