India's largest wine maker Sula's IPO oversubscribed on final day
India's largest wine maker Sula's IPO oversubscribed on final day

Alcohol beverage company, Sula Vineyards Ltd's with bids totalling 15.65 billion rupees ($189.63 million), initial public offering was oversubscribed on Wednesday.

By the last day of bidding, investors had offered 43.8 million shares, 2.33 times the supply of 18.8 million shares.

It is focusing on a valuation of up to 29.13 billion rupees in India's first pure winemaker initial public offering (IPO), taking advantage of a surge in consumption as a result of the epidemic in a nation that favours beer, whisky, and national libations.

9.6 billion rupees is the total amount Sula hopes to fund, with 2.88 billion already coming from anchor investors including Goldman Sachs and the Abu Dhabi Investment Authority.

While retail investor subscription was at 1.65 times the amount reserved for them, institutional buyers placed bids for more than 4 times the amount. The IPO's value fluctuated between 340 and 357 rupees.

As people accept wine as a social drink and realise it to be a healthier alternative to spirits in the next years, Sula may experience rapid growth. Compared to the global average of 13%, wine drinking currently accounts for less than 1% of alcohol consumption in India.

On the stock exchanges, Sula will make its debut between December 20 and December 22.

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