Nashik-based largest wine producer of the country Sula Vineyards' initial public offering (IPO), which opened for subscription on Monday, was subscribed 0.28 times or 28 percent on the first day, driven by response from retail investors and non-institutional investors.
The issue that opened today for subscription will close on Wednesday. The company received bids for 52,34,670 shares against 1,88,30,372 shares on offer, according to data from the BSE.
The retail investors' portion was subscribed 0.48 times. The company received bids for 44,99,712 shares against 94,15,186 on offer for this segment.
The non-institutional investors' portion was subscribed 0.18 times. The company received bids for 7,34,958 shares against 40,35,080 on offer for this segment.
On the other side, the portions set aside for qualified institutional buyers and employees were not subscribed.
On Friday, Sula Vineyards raised ₹288.10 crore from anchor investors ahead of IPO.
According to a filing of Sula, the IPO committee of the company, in its meeting held on December 9 in consultation with Kotak Mahindra Capital Company Ltd, CLSA India Private Ltd, and IIFL Securities Ltd, finalised allocation of 8,070,158 equity shares, to anchor investors at a price of ₹357 per equity share.
Twenty-two investors in total purchased shares of the company through the anchor book, including well-known buyers Goldman Sachs, New York State Teachers Retirement System, Abu Dhabi Investment Authority, Morgan Stanley, BNP Paribas Arbitrage, Segantii India Mauritius, and Citigroup Global Markets Mauritius.
According to the filing, out of the 8,070,158 equity shares allotted to anchor investors, 2,521,134 equity shares—or 31.24 percent of the total—were distributed to three domestic mutual funds via a total of five schemes.
Aditya Birla Sun Life Trustee, HDFC Mutual Fund, SBI Mutual Fund, ICICI Prudential Life Insurance, HDFC Life Insurance, Aditya Birla Sun Life Insurance, and Max Life Insurance were just a few domestic investors who purchased shares in the company.
The company has set the price band at ₹340 to 357 per equity share.
The public issue with a face value of ₹2 per equity share is a complete offer for sale (OFS) of 26,900,530 equity shares by existing shareholders aggregating up to ₹960.35 crore.