Sula Vineyards IPO opens today: GMP, analyst views, price band, allotment, listing date & more

Sula Vineyards IPO opens today: GMP, analyst views, price band, allotment, listing date & more

Sula Vineyards IPO was commanding a grey market premium (GMP) of Rs 34 apiece, which hints at prospects of single-digit listing gains

Amit Mudgill
Amit Mudgill
  • New Delhi,
  • Updated Dec 12, 2022 8:51 AM IST
Sula Vineyards IPO opens today: GMP, analyst views, price band, allotment, listing date & moreSula Vineyards IPO has limited scope for handsome listing gains but investors could look at the stock in case of weakness post its listing, Sharekhan said

The Rs 960.35-crore IPO by Sula Vineyards, India’s largest wine producer and seller, will open for public subscription today. Ahead of the IPO, the company finalised allocation of 8,070,158 shares to anchor investors at Rs 357 a piece, aggregating Rs 288.10 crore. The IPO is an offer for sale (OFS) of 2.69 crore shares to be sold in the Rs 340-357 price band.

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"At the issue price of Rs 340-357, the stock is trading at 51.3 times/53.8 times its FY2022 earnings, which is at discount to the large peers. The discount to peers could be justified by risk related to high concentration of buyers and state government grants on VAT contribute to a large part of its profitability. Consequently, the scope for handsome listing gains is limited as of now. However, investors could look at the stock in case of weakness post its listing," Sharekhan said

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Published on: Dec 12, 2022 8:49 AM IST
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