Sula Vineyards shares gain for the first time after two-day drop post listing

Shares of winemaker Sula Vineyards jumped nearly 11 percent in intraday trade on Monday, posting their first increase after a weak listing on Thursday.

The stock listed on the bourses last Thursday, December 22. It fell nearly 7.5 percent on its trading debut, followed by another 6 percent drop on Friday, taking the stock to as low as Rs 311, well below the IPO price of Rs 357.

Sula Vineyards’ Rs 960 crore initial public offer (IPO) was subscribed 2.33 times. It was open for subscription for retail investors between December 12-14.

The category for qualified institutional buyers (QIBs) got subscribed 4.13 times. The retail individual investors (RIIs) portion received 1.65 times subscription, while non-institutional investors’ portion was subscribed 1.51 times.

Sula Vineyards is synonymous with Indian wines and is considered a ‘category creator’ in the segment. Sula is headquartered in Nashik, 180 km northeast of Mumbai, and has two manufacturing units, in Nashik and Bengaluru each. As of January, it had a production capacity of over 13 million litre, of which 11 million litre capacity is housed in Nashik and 2 million litre in Karnataka.

The company distributes wines under popular brands such as Sula (its flagship brand), RASA, Dindori, The Source, Satori, Madera and Dia. Currently, it produces 56 different labels of wines across 13 distinct brands at its four owned and two leased production facilities located in Maharashtra and Karnataka.

After gaining as much as 11 percent, shares of Sula Vineyards are currently trading 7 percent higher at Rs 332.85.