On December 19, Sula Vineyards, the largest wine producer in India, is scheduled to announce the allocation of its IPO shares. The founder and times investors made an offer-for-sale (OFS) for the Rs 960 crore public offering, which was accessible for participation between Dec 12 and December 14.
The entire Sula Vineyards IPO, which is valued at Rs. 960.35 crores, consists of an offer to sell that sum. This IPO doesn’t include any fresh issues. The company’s promoters and founding shareholders are responsible for the sale offer component.
Here, it is important to keep in mind that although the fresh issues component pumps the company with new capital, it also dilutes EPS and equity. On the other side, the OFS is merely a transfer of shares, so there isn’t a new influx of money and the equity isn’t diminished either. The price range for the issue is between Rs. 340 and Rs. 357 per share and the IPO allocation pricing will be made public once the book-building of shares for the IPO process is complete.
The subscription period for this issue runs from December 12 to December 14, 2022. The basis for allocation will be established on December 19, 2022, and refunds will start on December 20. Demat credits are anticipated to occur on December 21, 2022, and the company is slated to float on December 22, 2022, on the NSE as well as the BSE.
Before the commencement of the IPO and up until the listing day, trading at the grey market rate (GMP) often begins around 4-5 days early. For Sula Vineyards Ltd., we have already GMP data going back six days, which should provide a decent representation of the listing performance.
How to purchase Sula Vineyards shares?
Investors can verify the status of their share allocation by completing three simple steps on the BSE portal or the IPO registrar’s portal.
On the BSE website
Choose equities as the issue type & Sula Vineyards Limited as the issue name on the BSE website. Then, enter either the registration details or perhaps its permanent account number
Select “I’m not a robot” from the drop-down menu, and then press the “Search” button.
Successful investors’ Demat accounts will receive equity shares by December 21, while unsuccessful investors will receive reimbursements in their savings accounts by December 20.
The debut of biggest winemaker
The scrip will make its stock market debut on December 22. However, given the lacklustre response towards the offer, the fact that the IPO is an offer for sale, and the market volatility, there is little anticipation for the listings of India’s largest winery.
Shares are exchanged in the grey market, an unregulated trading venue, long before they are allocated and listed on stock exchanges.
Investors frequently follow it to gain a sense of the asking price.
2.33 times were subscribed to the offer. High-net-worth people purchased 1.51 times their permitted quota of shares, while individual traders’ quota was purchased 1.65 times. Qualified institutional purchasers (QIBs) purchased 4.13 times their allotted quota of shares.
Analysts say there is little prospect for Sula Vineyards on the grey market. Analysts spoke to Moneycontrol on the condition of anonymity and said that Sula shares are trading in the grey market at a modest discount to the anticipated final offering cost of Rs 357 a share.
The equities market has now retreated more than three per cent after reaching fresh highs at the beginning of the month, which analysts suggested could be one of the factors influencing the muted interest inside the grey market.