Sula Vineyards: Should you subscribe to India's largest wine seller's IPO?

Sula Vineyards' revenue contribution from its own brands in the wine business rose from 63.6% in FY20 to 84% in FY22 as imports sharply came down from 31% to 7.9% during this period

The initial public offer (IPO) of India’s largest wine producer and seller Sula Vineyards(Sula)  has opened for subscription today and will close on Wednesday, December 14.

The issue is entirely an offer-for-sale with 26.9 million shares on the offer, which could fetch Rs 915-960 crore to the promoters and selling shareholders. The price band is fixed at Rs 340-357.

As per iPOWatch, the stock is currently commanding a grey market premium (GMP) of 11 per cent over the upper price band.

Sula is India’s 100 per cent grape wine-market leader with 52 per cent share. The grape