AgenciesNew Delhi: The Rs 960.35 crore-initial public offering (IPO) of Sula Vineyards continued to receive a tepid response from investors during the third and final day of the bidding process.
The issue was subscribed 59% on day two.
The company is selling its shares in the range of Rs 340-357 apiece between December 12-14, with a lot size of 42 equity shares. The issue comprises entirely an offer for sale (OFS) of more than 2.69 crore equity shares.
According to the data from BSE, the investors made bids for 1,60,22,328 equity shares or 85% compared to the 1,88,30,372 equity shares offered for the subscription by 12.30 pm on Wednesday, December 14.
The quota for retail bidders was booked 1.25 times, whereas the allocation for non-institutional investors fetched 65% bids. However, the portion for qualified institutional bidders was subscribed only 30%.
Brokerage firms remain mixed on the issue. A few are bullish on the company's growing fundamentals and high entry barriers, whereas others are skeptical over its aggressive valuations, despite being pure and OFS play.
Sula has focused on 'elite and premium' products with their revenue share improving from 67.81% in FY20 to 70.57% in FY22 and at the cost of 'economy and popular' categories, said Ashika Research's pre IPO note.
"Together with reduction in net-debt to equity ratio from 1.23 in FY20 to 0.58 in FY22, ROCE improved from 4.09% in FY20 to 20.86% in FY22," it added with a subscribe rating for the issue.
Capital Company, CLSA India and are the book running managers to the company, whereas KFin Technologies has been appointed as the registrar to the issue.
Sula Vineyards is the largest wine manufacturer in India along with the largest market share, said Aum Capital, which has a subscribe rating for the issue.
"A rise in disposable income is expected to increase the per capita wine consumption in the country, Goodwill amongst its suppliers and increasing brand value amongst the consumers, would enable it to report a steady performance in the years to come," it said.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
The issue was subscribed 59% on day two.
The company is selling its shares in the range of Rs 340-357 apiece between December 12-14, with a lot size of 42 equity shares. The issue comprises entirely an offer for sale (OFS) of more than 2.69 crore equity shares.
According to the data from BSE, the investors made bids for 1,60,22,328 equity shares or 85% compared to the 1,88,30,372 equity shares offered for the subscription by 12.30 pm on Wednesday, December 14.
The quota for retail bidders was booked 1.25 times, whereas the allocation for non-institutional investors fetched 65% bids. However, the portion for qualified institutional bidders was subscribed only 30%.
Brokerage firms remain mixed on the issue. A few are bullish on the company's growing fundamentals and high entry barriers, whereas others are skeptical over its aggressive valuations, despite being pure and OFS play.
Sula has focused on 'elite and premium' products with their revenue share improving from 67.81% in FY20 to 70.57% in FY22 and at the cost of 'economy and popular' categories, said Ashika Research's pre IPO note.
"Together with reduction in net-debt to equity ratio from 1.23 in FY20 to 0.58 in FY22, ROCE improved from 4.09% in FY20 to 20.86% in FY22," it added with a subscribe rating for the issue.
Capital Company, CLSA India and are the book running managers to the company, whereas KFin Technologies has been appointed as the registrar to the issue.
Sula Vineyards is the largest wine manufacturer in India along with the largest market share, said Aum Capital, which has a subscribe rating for the issue.
"A rise in disposable income is expected to increase the per capita wine consumption in the country, Goodwill amongst its suppliers and increasing brand value amongst the consumers, would enable it to report a steady performance in the years to come," it said.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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