The Rs 960 crore IPO ran from December 12 to December 14 and was subscribed 2.33 times in the three day bidding process, mainly led by qualified institutional buyers (QIBs) 
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The Rs 960 crore IPO ran from December 12 to December 14 and was subscribed 2.33 times in the three day bidding process, mainly led by qualified institutional buyers (QIBs) Sula Vineyards made a muted market debut on Thursday, as the scrip got listed at Rs 361 on NSE, a 1.12 per cent premium over its issue price of Rs 357. On BSE, the stock debuted at Rs 358, up 0.28 per cent. This was against hopes of a negative listing, as suggested by grey market premium.
At the prevailing price, the company commanded a market capitalisation of Rs 3,014.32 crore. The scope for handsome listing gains is limited, Sharekhan had said in its IPO note. The brokerage had advised investors to look at the stock in case of weakness post its listing.
Sula Vineyards is India's largest wine producer, which has market leader across all four price segments (Elite, premium, economy and popular). Sula is also the market leader across all the wine variants namely red, white and sparkling wines.
Its business is broadly classified under two categories wine production and the distribution and operation of wine tourism venues, including vineyard resorts and tasting rooms.
The Rs 960 crore IPO ran from December 12 to December 14 and was subscribed 2.33 times in the three day bidding process, mainly led by qualified institutional buyers (QIBs).
The quota reserved for QIBs was subscribed 4.13 times; the one reserved for non-institutional buyers received 1.51 times bids while the retail quota was subscribed 1.65 times. The issue was subscribed only on the Day 3 of the bidding process.
At present, Sula produces 56 different labels of wine at four owned and two leased production facilities located in Maharashtra and Karnataka. The company has entered into long-term supply arrangements (of up to 12 years) with grape growers for 2,290 acres as of September 30. The company also distributes wines under a bouquet of popular brands including 'RASA,' 'Dindori', 'The Source,' 'Satori', 'Madera' & 'Dia' with its flagship brand 'Sula' being the category creator of wine in India.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart said investors, who applied for the public offering for listing gains, may maintain stop loss at Rs 350 and wait for further upside till Rs 380.
Also Read: Sula Vineyards may see muted market debut today, suggests grey market premium
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